Instituto Federal de Telecomunicaciones

The Ministry of Public Service and the Federal Telecommunications Institute sign a partnership agreement for the use of DeclaraNet

• This agreement moves toward transparency and accountability

The Undersecretary of Administrative Responsibilities and Public Procurement, Manager of the Office of the Ministry of Public Service (Secretaría de la Función Pública, SFP), Julián Olivas Ugalde, and the Commissioner President of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Gabriel Contreras Saldívar, signed a partnership agreement for the use of the DeclaraNet online service.

Olivas Ugalde pointed out that it is very important that constitutionally autonomous bodies, as in the case of IFT, recently created by our legal system, comply with their obligations and that the signing of this agreement moves toward transparency and accountability.

He said that this works toward a more user-friendly system for public officials who access the system to submit their corresponding assets declaration with their undertakings.

The Manager of the Office of the SFP explained that DeclaraNet is a mechanism that assists in the investigation of irregularities under the responsibilities of public servants, and pointed out that audits, complaints and allegations in many cases would not be accounted for without an additional tool for asset statements.

In turn, IFT Commissioner President, Gabriel Contreras Saldívar, thanked the support provided by SFP to simplify the fulfillment of returns that the Constitution and the Law states for public servants.

He noted that DeclaraNet has proven to be a useful tool, which has evolved and has been perfected so that public servants comply with their duties and thus favor transparency and accountability.

He said that when the Federal Commission of Telecommunications became the Federal Telecommunications Institute, the first challenge was to comply with assets accountability.

Contreras Saldivar said that he is waiting for the House of Deputies, based on Constitutional Reform, to appoint the head of the IFT Internal Audit Department, for the compliance of constitutional obligations in the best possible manner.

SFP General Manager for Responsibilities and Assets, Javier Vargas Zempoaltecatl; SFP General Director of Information Technology, Manuel Sebastián Casillas Ruppert and IFT Technical Secretary, Juan José Crispín Borbolla attended the signing of the agreement.

The Federal Institute of Telecommunications (IFT) Plenary approves the program to tender bids and award frequencies to form two digitally broadcasted television networks

• The Program is formed by 246 frequencies under the principles of efficient operation of markets, maximum national coverage of services, the right to information and media social services.
• Under the principle of spectral efficiency, a higher sector of the population and a greater geographic surface are covered with regards to the original program.
• We managed to reduce the number of channels located in the 600 MHz band from 112 to 65, 13 of which were located in the border strip, which implied the coordination of works with the U.S. Federal Communications Commission, allowing that this band may eventually be cleared in the future.
• The “Program to Concession Television Broadcasting Frequencies that may be subject of Competitive Bids”, published in the Federal Official Gazette on June the 12th of 2012, as well as the amendment thereto of August the 16th of even year, is repealed.

In an extraordinary session, the Plenary of the Federal Institute of Telecommunications (Instituto Federal de Telecomunicaciones, IFT) unanimously approved the new Program to Tender Bids and Award Frequencies of Digitally Broadcasted Television to be conducted in 2014, these concessions of frequencies may be grouped in order to form at least two national networks that will have national coverage, in compliance with the instruction set forth in the Constitutional Amendment Decree in telecommunications matters.

The Program was designed to make a more efficient use of the radio spectrum and achieve a territorial and population coverage greater than the coverage pursued by the extinct Federal Telecommunications Commission program, published on June 12th of 2012 in the Federal Official Gazette (Diario Oficial de la Federación, DOF), which has been repealed, as well as the amendment thereto on August 16th of even year.

Thus, the IFT decided that the Program to Tender Bids for digital free-to-air television services will consist on 123 coverage zones that form 246 channels, to be tendered under the principles of efficient operation of markets, maximum national coverage, right to information and social services of the media.

The program to tender bids of June of 2012 included 306 channels to tender in 153 locations with a configuration of national networks, regional networks or even service stations that provide services in individualized locations; however, once an extensive analysis was made, and in order to comply with the constitutional instruction to form at least two television networks with national coverage, the IFT Plenary decided to amend it and issue an new Program, which design manages to cover a greater sector of the population and a greater geographical surface with respect to the former.

Under the criterion of spectral efficiency, the bidding scheme approved eliminates 68 channels included in the original program, which coverage was already attended by others, and incorporated 8 channels in locations that were not previously serviced, apart from the fact that the radio coverage of some of them were extended.

Furthermore, we managed to reduce the number of channels located in t h e 600 MHz band from 112 to 65, 13 of which were located in the border strip , which implied works coordinated with the United States of America Federal Communications Commission. These actions will eventually allow to clear the band of 600 MHz in a near future.

The approved program stipulates that potential licensees may only be entitled to provide broadcasting services in relation to each (channel) frequency within the zone of coverage defined by the radio, and the specific coordinates defined in the selfsame program.

According to this decision, the IFT guarantees the constitutional provision whereby a public service of collective interest, such as broadcasting, is provided under conditions of competitiveness and promoting a greater plurality of information, which is consistent with the instruction set forth in Article 28 of the Constitution.

The program will be published in the Federal Official Gazette (Diario Oficial de la Federación, DOF) in a few days, whereby the IFT has set the foundations that enable the full observance of the provisions of sub section II of the Eighth Transitory Article of the Decree of Constitutional Amendment, that foresees the issuance of the invitation to bid and the rules for competitive biddings for Frequencies of Digitally Broadcasted Television, according to the terms set forth for these purposes by the selfsame constitutional text.

The Technical Portability Committee convenes

Furthermore, the officers of the IFT convened the Technical Portability Committee and conducted the First Ordinary Session of 2013, attended by the 18 companies that form it, represented by 21

persons in charge .

In the context of the First Ordinary Session, such Committee informed to the officers appointed by the Plenary Session of the Institute that, from now on, they will promptly supervise this Committee, and a Portability portal was presented on the IFT webpage as a communication tool amongst the Committee members.

In this session, the matters of greater significance and interest for their members were also discussed, and the Calendar of Ordinary Sessions of 2014 was agreed upon, in order to have an active participation and greater commitment with the sessions for the next year.

Portability is the right of users which promotes a substantial improvement in the quality of services, a greater offer of products and rates reduction, insofar that competitiveness is strengthened and licensees will make their best efforts to maintain their users or attract new subscribers. The number portability will facilitate the subscriber decision regards to the licensee that such subscriber prefers to acquire for the service.

More benefits for the users of telecommunications services

• The new measures were imposed on Telmex and Telcel as they are determined to be preponderant economic agents
• Users will not pay for visiting user or roaming services when they are outside the local service or region in which they hired the service
• Telcel must deliver unlocked cell phones to subscribers under the prepaid scheme and postpaid scheme when equipment has been paid in full at the time of hiring the service

As a result of the various measures imposed by the Federal Telecommunications Institute to Telmex and Telcel, as they are determined to be preponderant economic agents in the telecommunications sector, both companies have the obligation to offer better conditions to their users when providing services.

These measures are intended to avoid that the competition in this sector is affected and that users benefit from a better service, such as:

• ROAMING. Telcel will cease charging for visiting user or roaming when its users use their own network, irrespective if they are located outside the local service or region in which they hire the service. For example, if a user who hired the service in Mexico City travels to Monterrey and makes a call to another user who is located in any other city in the country, the user will only pay the long distance rate, and no longer the roaming service. In that light, if this user calls a user who is located in Monterrey, the user will only pay local service rate. In the same case, if that user receives calls while in another city, service charges for the roaming service will not apply.

• UNLOCKING. All phones contracted under the prepaid scheme at Telcel must be delivered unlocked. If the contract is by lease (postpaid), unlocking will apply when the user covers the total cost of the equipment.

If the services were contracted before this April 6th, Telcel has 90 days thereafter to release the equipment, provided the owner has covered the full cost of the phone requested to be unlocked.

Unlocking is free in all cases, as long as the user requests it, and the user is not required to provide any documents. This process can be carried out at the service centers with the equipment only, and if technically feasible, unlocking can also be carried out remotely. Equipment which is reported as stolen cannot be unlocked.

• BILLING. Telcel must deliver invoices to its customers which detail the charge for telecommunications services received, and details of other goods or services other than telecommunications services. By doing so, the user can pay both charges independently, and if the user has fully paid the telecommunications service, the operator will not be able to interrupt the service, regardless of debts for goods or services that are not those of telecommunications.

Bills for postpaid service will include the information of the amount that the user will have to pay in the event that the user decides to cancel the contracted line early.

• TIE-IN SALES. The provision of a service cannot be conditioned to hiring another. For example, a user can hire broadband Internet service without having to purchase or have a local fixed telephone line.

• CANCELLATION. The terms that the user had at the time of contracting will be granted when cancelling the service, i.e., this process can be carried out at the contractor's express request by a telephone call. From the time of the end of the contract, no further charges can be made to the user.

The comprehensive document that contains all the measures imposed on Telmex and Telcel is available on the Institute website: www.ift.org.mx

The IFT will remain attentive of the preponderant economic agents' fulfillment of their obligations regarding telecommunications.

Mexico will occupy the committee vice-presidency for information, computer and communications policy Bureau of the OECD

• The IFT Commissioner, Mario Fromow Rangel was elected to carry out the position in representation of the country
• This appointment strengthens the leadership of the country and will contribute to position IFT internationally

Mexico, through Commissioner Mario Germán Fromow Rangel, was elected today by Organization for the Economic Cooperation and Development (OECD) member countries to occupy one of the Vice-presidencies of the Committee for Information, Computer and Communications Policy (ICCP) of this international body for 2014.

The Bureau will be integrated by nine officials: a president, who in this case will be from Danish government and eight vice-presidents of Norway, United Kingdom, Korea, the United States of America, Japan, Switzerland, Italy and Mexico governments.

The ICCP is responsible to promote public policy and regulation required for the expansion of Internet and Information and Communication Technologies (ICT) such as innovation force, productivity, growth, sustainable development and social welfare, as well as to fortify the cooperation between the member countries in this field and, in their case, between the member and nonmember countries.

This Committee develops principles and guidelines for the definition of public policy and regulation regarding:

• To support innovation, investment and competition in ICT and areas in all fields of economy and society, as well as to encourage the creativity in the development and use of Internet and ICT.

• To facilitate digital networks, devices, applications and services convergence, as well as to promote the universal access to networks and ICT.

• Contribute to the sturdiness and security of networks and information systems fortification, as well as the protection of privacy to improve the confidence in the use of Internet and ICT.

• Promote the interchange of experiences between member countries in areas of information, computers and communications policy, including the development of indicators to measure the advances in the information society.

The ICCP is made up of four working groups: infrastructure policy and communications services, information economy, information security and privacy and indicators for the Information Society.

This Committee is in charge, among other aspects, to carry out works for the biennial publication

“OECD Communications Outlook”, which provides an ample range of various telecommunications networks development indicators and compares performance indicators such as incomes, investments, uses and prices of the services in the OECD member countries.

With this appointment to Commissioner Fromow Rangel, the presence and leadership of the country is strengthened, as well as it will contribute to position IFT onto the international scope.

The Federal Telecommunications Institute decided to impose sanctions and declare the loss, in the nation benefit, of 9 broadcast stations operating without permission or concession

• The regulatory body will maintain verification and monitoring in order to ensure that broadcasting services be provided in strict adherence to the legal framework

In the 8th extraordinary session today, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) ruled sanctions and declared the loss in benefit of the Nation of goods intended for the operation of 9 broadcasting stations transmitting in the FM band in the Federal District and in the state of Puebla, without concession or permission.

As part of the verification performed by the Institute to monitor the proper use of the radio spectrum, the regulatory body carried out the corresponding preventative assurance visits at the addresses where these stations operated in order to avoid that they continue transmitting.

As a result of these proceedings and the due administrative procedure followed, the Institute confirmed irrefutably the lack of concession titles or permits that credited the legal operation of the stations.

As a result, the IFT Plenary determined, in terms of articles 101, fraction XXIII, 103, 104 bis and 106 of the Federal Radio and Television Law, to impose sanctions and declare the loss in benefit the nation of the goods intended for the operation of the respective stations at the following frequencies and locations:

The Federal Telecommunications Institute confirms its commitment to continue with surveillance actions so broadcasting in Mexico is provided in due conditions and under the terms of the Law.

The Federal Telecommunications Institute Plenary determines asymmetrical rates for interconnection services that the Preponderant Economic Agent will charge

• IFT draws on the Guideline final methodology to elaborate cost models published on April 12th, 2011
• These measures apply to Telmex, Telnor and Telcel, following the Institute Plenary determination on March 6th of this year that this group of companies is a preponderant economic agent

On March 6th, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) adopted the resolution by means of which it determined the preponderant economic agent in the telecommunications sector (Telmex, Telnor and Telcel) and imposed specific measures, in accordance with the provisions of the Eighth Transitory article of the decree of Constitutional Reform in Telecommunications matters.

Among these measures it is established that IFT is responsible for setting the rates for interconnection services for fixed services that the preponderant economic agent will charge, which shall be determined based on a cost model drawn up in accordance with the Guidelines published on April 12th, 2011 for this purpose, but considering their involvement measured in terms of end users. The spectrum availability for mobile services of the preponderant economic agent must be taken into account.

Thus, at the ordinary session held on March 26th this year, the Federal Telecommunications Institute Plenary, determined the asymmetrical rates that the preponderant economic agent will charge in the telecommunications sector for interconnection services to their networks.

The interconnection fees approved by the Plenary will take effect from the onset of the Measures imposed on the preponderant economic agent in the telecommunications sector up to December 31st, 2014.

The Fixed Cost Model that applies to Telmex and Telnor considers the concept of network hierarchy and the costs for each are calculated for the interconnection scenarios in which traffic is originated or ends, as well as for transit service. Rates for interconnection services that must apply for both companies during the period are:

With respect to the rates for interconnection services related to the termination service that Telcel will charge, the IFT resolved under the following terms:

The resolution of the Plenary establishes that the traffic measurement will be done by adding the real time of all completed calls during the billing period, measured in seconds, without the possibility of rounding off the next minute. Similarly, a surcharge for non-completed calls must not be added in the origin and termination of traffic in telecommunications public networks of Telmex and Telnor. The Fixed and Mobile Cost Models that were used to calculate the interconnection rates of the preponderant economic agent can be accessed at the following IFT website page: https://www.ift.org.mx/iftweb/sector-‐de-‐telecomunicaciones/

The IFT Plenary approves the program on geostationary orbital positions to be tendered in 2014

• Regarding the 113° West and 116° West positions and their C and Ku-bands extended for the provision of satellite communications services
• Greater competition is promoted in the market and thereby better conditions arise in quality and prices for the benefit of users

At ordinary session of today, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved by unanimity the Tender program for two geostationary orbital positions for commercial use, for the provision of communication services via satellite such as dedicated data, direct home television and corporate links.

The geostationary orbital positions concessions, which will be granted by IFT through a public bidding process to be held during 2014, are: 113° West and 116.8 ° West and their associated C and Ku range bands, with coverage in the national territory.

The concession of orbital resources, - which rights of occupation were accomplished by Mexico in accordance with the procedures laid down in the Radio-communications Regulation of the International Telecommunication Union, is of great import due to it promotes greater competition in the satellite industry, providing wider service offerings in the market, which will generate that these provide better quality and price conditions.

It is important to mention that the last allocation of geostationary orbital positions in the country was conducted in 2005.

In the coming days, this Program will be published in the Federal Official Gazette (Diario Oficial de la Federación, DOF).

Furthermore, the IFT Plenary issued unfavorable resolutions to 14 requests for extension of validity of frequency assignments of official use. In 11 cases, the refusal was due to non-compliance of obligations arising out of the respective assignments; and in the remaining three cases, the reason was, that from the regulatory point of view, the bands originally assigned are referred for purposes other than the ones requested.

With these resolutions, the State recovers those frequencies of the spectrum and advances toward their rearrangement, in order to achieve a more efficient use of this resource.

In addition, the Plenary approved the quarterly report activities of the Federal Telecommunications Institute, which, in compliance with the provisions of the political Constitution of the United Mexican States, will be presented to the Executive and Legislative Powers of the Union, as well as posted on the Institute website.

The Federal Telecommunications Institute plenary approves for the first time in the country the call to tender for broadcast television frequencies to form at least two new networks with national coverage

• IFT fulfils in a timely manner the mandates set out in the Constitutional Reform Decree in the telecommunications field
• The Call to Tender will be published tomorrow in the Official Gazette of the Federation and the bidding requirements will be available for electronic download by March the 9th
• This resolves the proceedings initiated for the determination of preponderant economic agents in the telecommunications and broadcasting sectors and safeguarding measures to avoid affecting the competition and the free competition in these markets, as well as measures for the effective unbundling of the preponderant economic agent in telecommunications local network

Pursuant to the mandate established in section II of Transitory Article Eight of the Decree of Constitutional Reform in the telecommunications matters, published in the Federal Official Gazette on June 11th, 2013, in an extraordinary meeting held today, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Plenary approved the Call to Public Tender for the concession of the use, leveraging and commercial exploitation of transmission channels for the provision of the digital broadcast television public service, for purpose of forming two networks with national coverage.

According to the transitional article, IFT had a period of 180 calendar days from its formation to comply with issuance of a Call and bidding rules concerned, for which the Call will be published tomorrow in the Federal Official Gazette (Diario Oficial de la Federación, DOF).

It is important to point out that in accordance with the administrative procedure, the Call must be published first in the DOF in order for the bidding rules to be made public, for which they will be available by March 9th on the IFT website with a free download.

In this way, for the first time in the history of the country, a bidding process will be achieved to assign new broadcast frequency concessions, which intends to achieve greater competition in this market, for the benefit of the users of this service.

Furthermore, at the same Plenary session were approved resolutions to the proceedings initiated for the determination of preponderant economic agents in the telecommunications and broadcasting sectors and safeguarding measures to avoid affecting the competition and the free competition in these markets, as well as measures for the effective unbundling of the preponderant economic agent's local network in telecommunications, in fulfillment of what is required in the fractions III and IV of the Eighth Transitory article of the Decree of constitutional reform in telecommunications matters.

The Institute will not provide further information on these resolutions until they are duly notified to the economic agents involved in referral procedures.

Once concessionaires are duly notified, the IFT Plenary will hold a press conference to publicize its details and all resolutions issued pursuant to the constitutional mandates.

IFE and IFT hold their first working meeting

The Federal Electoral Institute (Instituto Federal Electoral, IFE) and the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) carried out a visit to the National Center for Monitoring of the Integrated System for the Administration of State (Centro Nacional de Monitoreo del Sistema Integral para la Administración de los Tiempos del Estado, SIATE) where the operation and procedure that the electoral body follows to perform the schedules the promotional parties, compliance and verification of their transmission by radio and television industry was demonstrated.

 This meeting, which is part of the Framework Agreement for Collaboration for Technical Support in the Field of Monitoring of Media, signed by both institutions on November 14th of 2013, the IFT was attended by the Commissioner President, Gabriel Contreras Saldivar, Commissioners María Elena Estavillo and Sofía Labardini, Fernando Borjón, Mario Fromow, Ernesto Estrada and Adolfo Cuevas. IFE attendees were the Acting President Adviser Benito Nacif, Electoral Adviser María Marvan, Marco Antonio Baños and Lorenzo Córdova, as well as Executive Secretary Edmundo Jacobo.

 This visit is part of the collaboration that IFE committed with IFT, working together to strengthen their constitutional duties in telecommunications, as well as the use of the resources of the Mexican State, that the electoral body has.

Prior to the visit to SIATE, IFE officials, headed by the Electoral Adviser Lorenzo Cordova, Committee for Radio and Television President, and Commissioner Fernando Borjón, held a meeting to define the working groups and specify their duties to comply with the agreement signed between the two institutions.

IFE and IFT pledged to maintain technical cooperation in the field of monitoring of broadcasting media, the use of equipment, facilities and exchange of information and digital files belonging to the electoral body.

The Federal Telecommunications Institute (IFT) concludes the revision of the concession titles in force and creates the public register of telecommunications and broadcasting services concessions

• The regulatory body complies with the mandates included in fractions V and VI of the eighth transitory article of the Telecommunication Constitutional Reform Decree
• The Concessions Public Register will be available for general consultation; it includes relevant information on 3 thousand 323 telecommunication and broadcasting concession titles
• As the result of the concession titles revision, the Institute will implement other actions, additionally to those included in the Constitution

During the ordinary session celebrated yesterday, the Plenary of the IFT received from the Supervision and Verification Unit, and the Radio and TV Systems Unit, the report about the revision of the telecommunications and broadcasting services concession titles in force, responding to the provisions of fraction V of the Eighth Transitory Article of the telecommunication constitutional Decree, published by the Federal Official Gazette in 11th June 2013.

The aforementioned eighth transitory article establishes a term of 180 natural days, starting from the IFT conformation date, for this regulatory body to review the concession titles in force and verify the proper compliance of its terms, conditions, and modalities.

To comply with this provision, several work teams of the aforementioned units were created in order to perform a detailed revision process of all the files integrated by concessionaries. The results are as follows:

• Revision of a universe of 3 thousand 323 telecommunications and broadcasting concession titles in force.
• As for telecommunications, there are 2 thousand 038 concession titles in force,
• As for broadcasting, there is a total of 1 thousand 610 radio and TV stations grouped in 1 thousand 285 concession titles.

As a result of this revision, the IFT was able to generate updated information of these files, which will allow to have the updated compliance status of the concession titles and integrate the reception and classification process of the documents as a structural part of supervising actions.

Once the revision of the concession titles was finished, some information requirements emerged for operators whose files were not complete. Once such requirements were met according to the legal terms, a diagnosis is issued to establish regulatory improvement and administrative simplification mechanisms; and in case of possible breaches, the administrative sanction procedures begin based on the processes established and respecting the audience pledge.

Public Register of Concessions of Telecommunications and Broadcasting Services

Likewise, the Institute Plenary received the report of the Industry Service Unit on the integration of the Concessions Public Register, which includes the complete information of in forced concessions related to telecommunications and broadcasting public services, and according to the provisions of fraction VI of the eighth transitory article of the Reform Decree, which states the obligation of the Institute to collect the necessary information to constitute such Register.

In order to comply with this mandate, the IFT reviewed the open files of the different concessionaires included in the Telecommunications and Broadcasting Technical Record, as well as the information delivered to this Institute by the Ministry of Communication and Transportation.

This process, which implied the revision of a total of 3 thousand 852 files of telecommunications and broadcasting concessions in-forced and expired, allowed the integration and updating of all the information of the current concessions presently servicing telecommunications and broadcasting markets.

This is how the Public Register of Concessions was established and a digital platform was also designed to enable on-line and free consultation of the information by the general public at the IFT website: www.ift.org.mx

The Register contains all the relevant information of telecomm and broadcasting concessions (name of the concessionaire the date the concession was issued and its expiration date, its scope and authorized services, as well as its frequency bands and orbital positions, if applicable, and/or associated satellite systems, among other data), as well as the images of the documents supporting the corresponding data.

To establish the Public Register of Concessions it was necessary to integrate the aforementioned information with approximately 14 thousand related documents, 56 thousand digitalized images of telecomm concessions and 70 thousand images of broadcasting concessions, all this will be available for the general public next March 9^th.