Instituto Federal de Telecomunicaciones

The Federal Telecommunications Institute (IFT) undertakes actions and issues regulations to promote competitiveness in the broadcasting sector

• With these provisions, a better offer and quality in these services is being promoted
• The bidding process for two broadcast digital television national networks was launched
• The new transition policy towards Digital Terrestrial Television (DTT) was issued
• The IFT provided the guidelines for retransmission of broadcasted television signals over pay television (pay TV).

A year after it was formed, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) issued several provisions designed to promote greater range of services and improve quality in the field of broadcasting, in compliance with the provisions of the Constitutional Reform in telecommunication matters.

Thus, the IFT started a process for bidding two broadcast TV networks; being the first time this is done in the country, and which will be completed by the 2015 first quarter with the granting and execution of the respective concession titles.

The Decree of the Constitutional Reform in its Eighth Transitory Article, section II establishes that IFT, in order to comply with the “Bidding and Awarding of Digital Broadcast Television Frequencies Program", had to publish the conditions and calls for the bidding of new grouped broadcast television frequencies concessions no later than 180 calendar days as from its effective date, in order to create at least two new television networks with national coverage.

On December 20^th, 2013 the Plenary of the IFT published in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF), the Bidding Program with the frequencies and coverage of the broadcast television stations in the country by which two national networks will be created. Later, on January 30th, the Program was modified addressing eight documents with some comments on these matters, as established in Article 17-A of the Federal Law on Radio and Television, effective at such date.

The Call for Bids was published in the DOF on March 7th of 2014 (March 7, 2014), and the Conditions for Bids (Bid No. IFT-1) were made available to the interested parties through the Internet portal of the IFT on March 8, 2014. On June 12th the Plenary amended the call for bids and the calendar established in the Conditions, pending the publication of the secondary legislation derived from the

Constitutional Reform Decree in Telecommunications and Broadcasting matters.

The Call for Bids describes the stations, with the frequencies, coverage, and overall characteristics of the bidding process, while the Conditions for Bids and its appendices provide, among other things, the requirements to be met by bidders, the concession title agreement and the terms in which the process will unfold.

The Conditions for Bids set the timetable for the process and detail the criteria to determine that the awarded party/parties of the Call for Bids will not be purely economic, as the technical, legal and financial capacity of the bidders, the congruence of business plans with constitutional and Bidding Program purposes, as well as aspects related to the limitation, the accumulation of radio spectrum and maximizing coverage, this resulting in the direct benefit of population.

On September 2^nd and 3^rd of the present year, the parties interested in this bidding process submitted their opinion request on economic competition. The presentation of each of the subsequent stages is specified in the published calendar.

Digital Terrestrial Television (Televisión Digital Terrestre, TDT)

During its first year of operations, the IFT approved the new Policy for the Transition to Digital Terrestrial Television (DTT), which establishes the guidelines to be followed by concessionaires and permit holders to complete the transmission of analog television signals no later than on December 31st of 2015.

This document incorporates comments and reviews submitted by participants in the public consultation held from July 18^th to August 8^th of this year, and it conforms to the provisions of the new legal framework.

Under the new transition policies, all television stations shall have DTT broadcasting on air no later than on August 15^th of 2015.

DTT benefits include multiprogramming, a system which allows transmission of more than one channel of programming on the same transmission channel. The new DTT Policy sets that concessionaires and permit holders shall satisfy the provisions of the Federal Telecommunications and Broadcasting Law, as well as with the guidelines issued by the IFT for such purpose.

The IFT will carry out the actions required to keep the population properly informed about the transition to DTT, specifying the date and time of the termination of analogue transmissions, a task which may be coordinated with agencies of the Pubic Administration to be performed. The concessionaires and permit holders of this service will also be required to carry out campaigns to inform their viewers in a timely manner about this process.

Retransmission of broadcast signals

Moreover, on February 27^th this year, the IFT published in the DOF the general guidelines on the retransmission of broadcast signals. This document, which used the information obtained from a public consultation carried out on November 20th and December 19th of 2013, established the technical criteria to duly enforce the obligations set forth in the Constitution for open and restricted television concessionaires in supply and retransmission of broadcast signals.

With this Agreement, the Plenary established that the restricted television concessionaires have the obligation to carry out the retransmission of broadcast television signals in the same geographic coverage area, without having any manifestation of will on the part of the concessionaire of the broadcast television.

Likewise, this resolution establishes that broadcast television and/or restricted television concessionaires that have been declared with substantial power in any of the markets for telecommunications or broadcasting or preponderant economic agents shall have no right to the gratuity rule, which should not impact as an additional cost in the services contracted by subscribers and users.

 The Federal Telecommunications Institute is monitoring the Preponderant Economic Agents comply with the measures provided for the benefit of end consumers and competitors

• It is the first time that firms with the largest stake in the telecommunications and broadcasting sectors are subject to the measures referred through which protection is provided to consumers, preventing free competition from being affected in service provision
• Its application will allow use of service under the best conditions

Within the first year of operations, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has issued regulating provisions of great consequence for the development of the telecommunications and broadcasting sectors, having direct impact on behalf of consumers.

For the first time in the history of telecommunications and broadcasting, companies with the largest stake in this sector will be subject to diverse measures. Its application is surveyed rigorously to provide protection to consumers and to prevent free competition that could affect them.

On March 6^th, 2014, the Federal Telecommunications Institute (IFT), in compliance with the Constitutional Reform in Telecommunications matters, issued the resolutions determining the preponderant economic agents in the telecommunications and broadcasting sectors.

Resolutions, celebrated within the first 180 day period after the Plenary was constituted, in agreement with the Constitutional mandate, through which an environment of competition is promoted among service providers and on behalf of consumers.

Telecommunications

Through Agreement P/IFT/EXT/060314/76, the economic interest group (stakeholders) was determined by the Plenary of IFT, being Telmex, Telnor, Telcel, América Móvil, Grupo Carso and Grupo Inbursa, as part of it as PEA of the telecommunications sector. The necessary measures were imposed to prevent free competition from being affected.

The following outstand:

- Wholesale roaming services (national roaming), allowing other mobile companies to provide their services in areas without coverage; hence, consumers can receive and make phone calls though the best possible coverage available.

− Commercialization and resale of services offered to operators lacking of infrastructure (MVNOs, Mobile Virtual Network Operators).

− Service provision of dedicated links, quality conditions to be met by the prevailing economic agent (PEA), (Agente Económico Preponderante, AEP); such as, due delivery periods, fault repairs, minimum quality standards, non-compliance penalties, and all those that allow concessionaires to effectively provide their services through utilization of contracted links.

− Rate control system applicable to prices for fixed end-users, via a price cap approach that includes a basket composed of voice and data services.

− Effective interconnection between mobile operators, fix operators and PEA, and determination of prices in respect to corresponding asymmetric rates.

− Access and sharing of passive infrastructure, via public offers approved by IFT. Free negotiation amongst the parties is privileged and, in case of disagreements, the institute shall decide the rates and conditions apply.

− Consumer protection by prohibiting conditional sales and telecommunications service interruption for non-payment of other goods and services as well as the obligation to provide clear and accurate information about services and fees, as well as unlocking terminals and eliminating roaming charges (roaming) for services rendered within the same network AEP, among others.

− Separation of accounts. Data provision in compliance with methodology established by IFT that will identify the presence of cross-subsidies.

− PEA shall not be able to acquire exclusive transmission rights of relevant audiovisual content determined by the institute or to engage in conducts of similar effects.

− Prohibitions on telecommunications AEP participation in social capital (stake), management or control of AEP in broadcasting were established.

Obligations allowing unbundling of the telecommunication local network were also established:

Provide the necessary information to carry out the unbundling of the local loop and meet all different unbundling types of unbundling set by IFT.

− Participate in a technical committee that will be coordinated by the institute, with the collaboration of the industry, in order to technically implement the unbundling service.

− Provide a reference offer for the unbundling services of the local network with service levels of availability, fault repairing terms, among others.

− Make available to concessionaires, a management plan of the unbundling of frequency spectrum to ensure the deployment of signals of different types in the local loop, so that interference is minimized and the use of the frequency spectrum is optimized.

− Implement applicable tariffs and rates to unbundling services, determined by IFT.

On March 26^th, 2014, the Plenary determined the asymmetric rates to be charged by PEA in the telecommunications sector, for the interconnections services to their network. Approved interconnection rates will be effective from the coming into force of the measures imposed by the PEA in the telecommunications sectors and until December, 31, 2014.

Broadcasting

On the other hand, on March 6th 2014, the Plenary of IFT issued a resolution through which the group of stakeholders integrated by Grupo Televisa S.A.B. and diverse related companies was determined, as the PEA in the broadcasting sector. Applicable measures were imposed, outstanding the following:

− Access and sharing of passive infrastructure, via public offers approved by IFT. Free negotiation between the parties is favored and, in case of disagreements, the institute shall decide the rates and id conditions apply.

− PEA shall not be able to acquire exclusive transmission rights of relevant audiovisual content determined by the institute or to engage in conducts of similar effects. Should any of its channels of programming be offered by the PEA to their affiliated companies, subsidiaries, related companies or third parties through any technological platform different from television broadcast, these have to be provided to any other requiring individual under the same terms and conditions. Whenever two or more program channels are offered in package form, these shall likewise be offered unbundled.

− PEA is bound to publish and deliver to the IFT the information regarding advertising services offered on broadcast television, as well as the prohibition on conditioning or apply discriminatory treatment in relation to advertising spaces offered through their diverse technological platforms.

− Procedures as the prohibition on participating in buying clubs without the permission of IFT and establishing prohibitions on AEP participation in broadcasting in the social capital, management or control of AEP in telecommunications, were defined.

Hence, on May 30th, the Plenary of the IFT determined the audiovisual content that cannot be contracted by the PEA to be broadcasted on an exclusive basis:

a) Matches of the Mexican Soccer Team (Men’s main team)

b) Opening and closing sessions of the Summer Olympic Games organized by the International Olympic Committee

c) Opening and closing sessions, opening matches, quarter final, semifinal and final rounds of the World Championship of International Federation of Association Football (Fédération Internationale de Football Association, FIFA), taking place every four years, commonly known as World Cup or Soccer World Cup.

d) Final match of the first division League Cup, organized by the Mexican Soccer Federation, commonly known as MX League.

Both PEA have furnished the IFT with their reference offers for wholesale service provision.

Documentation in reference was reviewed by the institute and handed back past August, including the remarks and requirements necessary to authorize the referred service provision under fair competition conditions. Hence, concessionaires shall file the new proposal meeting the demands requested to the Institute.

The Plenary of Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approves new policy for the transition to Digital Terrestrial Television (Televisión Digital Terrestre, TDT)

• It defines the guidelines to be followed by concessionaires and permit holders to terminate the transmission of analogue signals by 31^st December 2015, at the latest
• The document issued includes comments and opinions set forth by those who participated in the public consultation carried out on July 18th of the present year
• It adjusts to the provisions contained in the new legal framework
• The Federal Telecommunications Institute (IFT) rejects the proposal of Commissioners Estavillo and Labardini to promote a constitutional dispute against the Federal Telecommunications and Broadcasting Law
• It imposes an asset loss sanction and declaratory in favor of the Nation against three users of radio spectrum, who do not have a concession or permit.

With the purpose of making the corresponding adjustments based on the provisions of the constitutional reform of June 2013 and the Federal Telecommunications and Broadcasting Law, the Plenary of Federal Telecommunications Institute (IFT) issued today the new policy for the transition to Digital Terrestrial Television (DTT), which established the guidelines to be followed by the concessionaires and permit holders of this service to terminate the transmission of the analogue television signals by December 31^st 2015, at the latest.

The document, approved during the ordinary meeting of the Plenary today, incorporates comments and opinions received during the public consultation process carried out by this Institute from July 18th to August 8th of the present year, receiving 57 contributions on the contents of the project.

Therefore, the new DTT Policy establishes the requirements for the IFT to order the analogical outage, including the one achieved at receptors and decoders penetration level, capable of receiving digital transmissions in 90% or more of the low-income households defined by the Ministry of Social Development (Secretaría de Desarrollo Social, SEDESOL) in every coverage area, that is to say, in the total service areas of every television station of the country and their shadow zones complementary equipment where analogical transmissions take place.

Likewise, the DTT Policy defines the mechanisms and the coordination between the Federal Telecommunications Institute (IFT) and the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes, SCT) – in charge of implementing the programs and related actions to the delivery of digital receptors— so the Ministry can provide the Institute the information of the low-income households specified by SEDESOL, such as:

a) Number of households by analogical transmission coverage area,

b) Number of households capable of receiving digital transmissions by coverage area where analogical transmissions are performed, and

c) The penetration percentage of digital receptors and decoders in households in every coverage area where analogical transmissions are performed.

Given the situation, and in order to offer legal certainty and security to concessionaires and permit holders of broadcasted television, the DTT Policy establishes that when the Institute determines the compliance of the abovementioned requirements, this regulating body shall agree on the analogical outage date and the resolution shall be notified through the Federal Official Gazette (Diario Oficial de la Federación, DOF).

As for multiprogramming, the systems allowing the transmission of more than one channel in the same transmission station, the DTT Policy states that concessionaires and permit holders who want to use it shall comply with the provisions of the Federal Telecommunications and Broadcasting Law and the relevant guidelines set by the Institute.

According to the constitutional mandate, broadcasted television concessionaires and permit holders shall return to the State the channels (frequencies) where they transmitted analogically as soon as the digitalization process is completed.

With the purpose of ensuring the continuity of television services, concessionaires and permit holders are obliged to replicate with their DTT transmissions their analogical signal coverage area using complementary shadow zone equipment.

The Federal Telecommunications Institute (IFT) shall perform the necessary actions to properly inform the population about the transition to DTT, specifying the date and time the analogical transmission will end in coordination with Government Agencies. Likewise, service concessionaires and permit holders will also be obliged to implement campaigns to inform their corresponding audiences about the process in a timely manner.

The Institute shall survey the fulfillment of the obligations derived from the DTT transition and shall sanction, according to the terms of the Federal Telecommunications and Broadcasting Law , the concessionaires and permit holders of broadcasted television who do not fully comply with the obligations.

By issuing this Policy, the Agreement to adopt the Digital Terrestrial Television Technological Standard is repealed in favor of the Policy for the Transition to Digital Terrestrial Television in Mexico, published in the DOF on July 2nd 2004, and its last modification was published on May 7th 2014.

On the other hand, in the session held today, the Plenary of Federal Telecommunications Institute (IFT), rejected with five votes the proposal set forth by Commissioners Maria Elena Estavillo and Adriana Labardini to submit a constitutional dispute against some articles of the Federal Telecommunications and Broadcasting Law and the Federal Metrology and Standardization Law.

Regarding other issues, as a result of the verification and supervision activities performed by the Institute to ensure the proper use of the radio spectrum, three cases were identified for using frequencies of the radio spectrum without previous concession or license. The Institute decided to impose a sanction and declare the loss of the equipment and assets in favor of the Nation.

The Plenary issued the new Organic Statute of the Federal Telecommunications Institute

• The new Organic Statue presents new model of organization with a multidisciplinary approach that deals with the powers and mandates that contemplates the implementation of Federal Telecommunications and Broadcasting Law and the Federal Antitrust Law
• To comply in due time and form with the Fourth Transitional Article of the Federal Telecommunications and Broadcasting Law which establishes the adequacy of the Regulation within the legal framework
• It incorporates a new convergent administrative order that responds to international best practices

On September 20, 2013 the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved the first Organic Statute which responded to the need of having an administrative structure with specific powers so that this regulatory body is able to exercise its functions and to comply with constitutional mandates, providing for the issuance of a new regulation once the secondary legislation comes into force issued by the reform to the Constitution in the field of telecommunications.

In this respect, in compliance with the provisions of the Fourth Transitional article of the Federal Telecommunications and Broadcasting Law, today, in extraordinary session, IFT Plenary approved the issue of the Organic Statute, in order to adapt it to the mandates set out in the new legal framework.

The new Organic Statute incorporates a converging organizational model which lays down administrative units of competence to exercise their functions with a multidisciplinary approach that deals with the powers and mandates that contemplates the implementation of Federal Telecommunications and Broadcasting Law and the Federal Antitrust Law.

This converged structure includes the integration of substantive areas by specialized functions in which each will serve the corresponding issues of both telecommunications and broadcasting.

For the design and creation of the Organic Statute international best practices were taken into account, based on a compared survey between over 10 regulators from various parts of the world, which is an administrative ordering oriented to the efficiency in the implementation of the procedures carried out by the Institute.

It highlights the creation of the IFT Center for Studies, which will develop research, studies and analyses in the fields of telecommunications, broadcasting and economic competition in these sectors, to contribute to the performance of the functions of the Plenary and generate documents that are useful to industry, academia, and society in general.

Before the important task of protecting the rights of the users of telecommunications services, the General Coordination of User Policy is created, whose objective is to design and implement policies and guidelines to ensure protection of the population that receives and hires various services, among others.

On another note, to comply with legal mandates in the field of media and audiovisual policy, the approved General Regulation incorporates the Media and Audiovisual Content Unit, which will be in charge of designing and planning such policies to promote free access to diverse information, freedom of expression and the protection of the rights of audiences, among others.

Furthermore, the Radio Spectrum Unit main function will be the management of this resource, while the design of regulatory policy will remain with the Regulatory Policy Unit.

In response to the IFT objective to have greater participation and advocacy at the international level, the new organizational model will have a General Coordination of International Affairs that will act as the Institute liaison with authorities and international agencies for the execution of projects and follow-up to cooperation agreements, among others.

The General Coordination of Strategic Planning and Regulatory Improvement are also created to give full compliance to the obligations set out in the Federal Telecommunications and Broadcasting Law.

With the issue of the General Regulation, not only compliance in due time and form is provided to the obligation of harmonizing this system with the new legal provisions, but also creates a new institutional design which will allow this body to regulate the telecommunications and broadcasting sectors in a modern and efficient manner, as well as the protection of the rights of users of services and stakeholders.

The Plenary resolves on the terms and conditions of the first infrastructure public offering of the preponderant economic agent members in the broadcasting sector

• In a period of 15 calendar days after being notified, the companies must submit an Offer that complies with the requirements established in the measures imposed for infrastructure matters
• IFT issued three Technical Provisions which contain the minimum specifications for the installation and operation of broadcasting services (AM, FM and television), which will avoid falling into a regulatory vacuum with the loss of validity of the corresponding official Mexican Standards in the next few days
• The Institute will initiate a public consultation within the following 90 calendar days, in order to conduct a comprehensive review of technical provisions that regulate the different broadcasting services

On March 6^th of this year, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) adopted the resolution by means of which it determined the economic interest group headed by Grupo Televisa. S.A.B., as preponderant economic agent in the broadcasting sector, and imposed specific measures, in accordance with the provisions of the Eighth transitory article of the decree of constitutional reform in the telecommunications field.

As part of these measures, it was established that the Preponderant Economic Agent must submit for the Institute's approval the first Public Offer of Infrastructure (POI), i.e., the set of conditions and information which obligates to allow access to and use of passive infrastructure to broadcast television service concessionaires who request it.

The passive infrastructure refers to non-electronic items at the service of transmitting plants, and Television Broadcasting Concession Service networks that include, among others, the right of way, conduits, masts, trenches, towers, poles, equipment facilities and related feeds, security, auxiliary equipment, sites, properties, physical spaces (except studios), ducts and pipes, as well as energy sources and air conditioning systems.

After the Institute conducted an analysis of the information submitted by the Preponderant Economic Agent in the broadcasting sector, the IFT Plenary ruled, in an extraordinary session held yesterday, the terms and conditions which shall contain the POI of each of the members of the Preponderant Economic Agent.

In this respect, considered that the information received does not provide all the elements that these companies should include in the POI, they were required to, within a period of 15 calendar days after being notified, to submit to the Institute's consideration an offer that meets the requirements of infrastructure issues.

On another note, the Plenary issued three Technical Provisions which contain the specifications for the installation and operation of broadcasting services:

a) Technical Provision IFT-001-2014: Specifications and Minimum Requirements for the Installation and Operation of Sound Broadcast Stations in Amplitude Modulation, which shall enter into force on August 29^th this year.

b) Technical Provision IFT-002-2014: Specifications and Minimum Requirements for the Installation and Operation of Sound Broadcast Stations in Frequency Modulation, which shall enter into force on September 1^st this year.

c) Technical Provision IFT-003-2014: Specifications and Minimum Requirements for the Installation and Operation of Analog Television Broadcast Stations (VHF and UHF bands), which shall enter into force on September 2^nd this year.

Notwithstanding that the Federal Telecommunications and Broadcasting Law establishes it is the IFT obligation to carry out public consultations for the issuance and amendment of rules, guidelines or administrative provisions of a general nature, due to the proximity of the conclusion of the entry into force of the Official Mexican Standards (NOM-01-SCT1-1993; NOM-02-SCT1-1993; Nom-03-SCT1-1993), which establish the technical specifications for the installation and operation of stations for the three broadcasting services mentioned in equal order, the issuance of these Technical Provisions is required and thus to avoid a regulatory vacuum that would cause negative effects on users and the industry.

Thus the IFT Plenary, in use of its powers to issue general administrative enforcement to regulate technical aspects regarding the installation and operation of radio stations, in accordance with articles 6 and 28 of the Political Constitution of the United Mexican States and articles 1, 2, 7 and 15 of the Federal Telecommunications and Broadcasting Law, determined the issuance of those provisions which shall remain in force for one year from the following day of their entry into force.

However, in accordance with the principles of transparency and citizen participation, the Institute will start a public consultation in the following 90 calendar days in order to make a deep and comprehensive revision of the Technical Provisions that will be applied at the time instead of the approved ones today that are only considered specifications and minimum requirements for the installation and operation of broadcasting stations.

The Federal Telecommunications Institute Plenary reviews the tender proposals of wholesale services submitted by TELMEX, TELCEL and TELNOR

• It determines to require various modifications from the Preponderant Economic Agent in order that the wholesale supply allows the provision of telecommunications services in fair conditions of competition
• Once the agreements are notified, the Preponderant Economic Agent will have 20 working days to meet the Institute requirements and resubmit the Tenders for consideration

As reported in a timely manner, on March 6th this year, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Plenary approved the resolution which determined the preponderant economic agent for the telecommunications sector (Telmex, Telnor and Telcel) and imposed specific measures in accordance with the provisions of the Eighth Transitory Article of the decree for Constitutional Reform in Telecommunications matters.

Among such measures it was established that Telmex, Telnor and Telcel must submit, for the approval of the Institute, Reference Offers for the following wholesale services:

• Lease of dedicated links
• Shared Access and Use of the Passive Infrastructure in fixed networks
• Shared Access and Use of the Passive Infrastructure in mobile networks
• Virtual Mobile Operators
• Visiting Users Wholesale Service

Following a thorough analysis of the Tenders presented to the Institute by Telmex, Telnor and Telcel, the Plenary resolved today in a special session, to request various modifications from the Preponderant Economic Agent in order that the wholesale supply allows the provision of telecommunications services in fair conditions of competition, in accordance with the objectives determined by the Institute.

Once the agreements are notified to the Preponderant Economic Agent, it will have 20 working days to meet the requirements of the Institute and resubmit the Reference Offers for consideration, in order for the Institute to authorize them, or modify them under their terms and conditions when they do not conform to the measures or do not provide conditions that promote competition in the sector.

The IFT Plenary submits to Public Consultation the procedure which telecommunications services 'permisionarios' licensees and qualifiers must fulfil for the electronic registration of service rates that they will offer to the users

• The public consultation of the registration electronic mechanism of rates will allow the strengthening of the Institute decision-making.
• There will be an electronic system for the rates registration which will be accessible to users so that they can learn about operator services and promotions.
• IFT agrees to impose sanctions and declare the loss in benefit of the nation, assets intended for the operation of seven FM radio stations which do not have permission or concession to operate.
• IFT determines 31 radio stations in Amplitude Modulation (AM), which at the time were authorized to change to FM frequency and which must continue broadcasting simultaneously in AM.
• Resolves three interconnection disagreements between operators of fixed and mobile telecommunications networks.
• Appoints Juan José Crispín Borbolla as the Plenary Technical Secretary.

In ordinary session, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) Plenary agreed to submit to public consultation the "Draft Agreement which establishes the procedure for the submission of the electronic application for registration fees to users that must be complied by telecommunications services concessionaires, under relief of the Federal Telecommunications and Broadcasting Law” for a period of ten working days, counting from its publication on the IFT website.

In accordance with article 205 of the Federal Telecommunications and Broadcasting Law, telecommunications service concessionaires must submit an electronic application for registration of its user rates, prior to its entry into force, so the Institute shall establish an electronic mechanism so that the prices of the services may be applied from the date of the respective application.

Public consultation merits transparency and promotes citizen participation in the general provisions issuance process arising from the IFT. With the results obtained, the Institute may implement an electronic mechanism for efficient, robust and clear rates registration which will eliminate artificial barriers for the immediate adoption of attractive and competitive commercial schemes for the various users of telecommunications services.

Furthermore, the Plenary determined sanctions and declare the loss in benefit of the nation of assets intended for the operation of seven broadcasting stations transmitting on the FM band without corresponding concession or permission.

In all cases, IFT made assurance preventive visits at the addresses that operated the stations. In strict adherence to the law, the administrative procedure was satisfied and found the non-existence of concession titles or permits to accredit the legal operation of these frequencies. As a result, the IFT Plenary determined, based on 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 of the nation, the assets intended for the operation of stations in the following frequencies and locations:

Likewise, the Plenary determined that 31 AM radio stations, which were authorized to change to the FM frequency, will continue operating simultaneously, until the Institute determines that the provision of the broadcasting service in all the populations of the area covered by these stations is guaranteed based on technical studies conducted by the Radio and Television Systems Unit.

Thus, various communities in the country that only have AM coverage will remain connected through this service, based on provisions of the Sixth item of the "Agreement which establishes the requirements to carry out the change of authorized frequencies to provide the radio service operating in the band of modulated amplitude in order to optimize the use, leveraging and exploitation of an asset in the public domain in transition to digital radio", published in the Federal Official Gazette on September 15th, 2008.

In telecommunications matters, the Plenary determined the non-agreed terms of interconnection conditions between network operators of fixed and mobile telecommunications for termination services in the "calling party pays" scheme, applicable for the period of January 1st to December 31^st, 2012. These decisions established the following:

1. Megacable Comunicaciones de México must pay a $0.3214 pesos fee per interconnection minute to Operadora Unefon, SOS Telecommunicaciones, Iusacell PCS de México, Iusacell PCS and Comunicaciones Celulares de Occidente.

2. Megacable Comunicaciones de México must pay a $0.3214 pesos fee per interconnection minute to Pegaso PCS.

3. Pegaso PCS must pay a fee of 0.02432 pesos per minute to Cablevision, Bestphone, Operbes, Cablemás Telecomunicaciones and Cable and Cable y Comunicación de Campeche. While these companies with fixed networks must pay a fee of $0.3214 pesos per interconnection minute to Pegaso PCS.

At the session, by unanimous vote, the highest organ of the IFT government Commissioners appointed Juan José Crispín Borbolla as Technical Secretary of the Plenary, as provided in article 17, section III of the Federal Telecommunications and Broadcasting Law.

The IFT Plenary resolves 80 procedures submitted by concessionaires and 'permisionarios' ¹ licensees of telecommunications and broadcasting services

• With these agreements the IFT advances in pending industry procedures
• The IFT grants 7 permits to telecommunications distributors to establish and operate
• It approves 14 requests for the extension of public telecommunications networks concessions validity
• IFT resolves to grant 35 endorsements for the use, exploitation and operation of radio stations in various localities of the country

Today, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved, in extraordinary session, 80 matters relating to endorsements of radio and television stations, the issuance of various titles of concession and grants of extension of concessions of public telecommunications networks, among others.

It highlights the grants of seven permits to establish and operate telecommunications services distributors, which promotes the entry of new suppliers and with it a greater diversity in the supply of local fixed and mobile telephony services; national and international long distance and data transmission, as well as restricted television and audio.

The concessions are companies that resell the services referred to by the use of the capacity of a licensee's public telecommunications networks. On this occasion, the permissions granted by the Plenary correspond to Comtelsat, S.A. de C.V.; Inaecom, S.A.P.I de C.V.: Kubo Cel. S.A.P.I. de C.V.; Matriz Murano, S.A. de C.V.: Sitm S.A. de C.V. and GBR TEL, S.A. de C.V.

Regarding extensions of concession titles in telecommunications, 14 requests from concessionaires of public telecommunications networks in various localities of the country were adopted. IFT also approved an extension of the validity of title to a concessionaire who exploits emission and reception rights of signals of frequencies associated with foreign satellite systems operating in the national territory.

Also, the Plenary decided to grant two concession titles for the installation, operation and exploitation of public telecommunications networks in Mexico City and Chiapas, respectively, and agreed to grant a concession to exploit the rights of emission and reception of frequency bands signals associated with foreign satellite systems to cover and provide services in the national territory.

The broadcasting sector decided to grant 35 endorsements for the use, leveraging and exploitation of concession holders for radio stations in various locations in 19 states across the country, which guarantees the continuity of the service in the areas in which the concessionaires operate and significantly advances in the relief of the pending proceedings in this matter.

Likewise, the Plenary approved the endorsement of 19 permits to television stations, in favor of Governments of the States of Sonora, Michoacán and Nuevo León. The endorsement of these permits will facilitate the move of the stations to digital terrestrial television in the country.

¹ According to the Federal Official Gazette (DOF), any natural or legal person who has the corresponding permission to provide Broadcasting Services, this term is translated herein as “licensee".

The IFT Plenary approves the call to tender and bases of two geostationary orbital positions

• It will be the first allocation of orbital positions in the country since 2005
• Those interested in participating in this tender must obtain favorable opinion from the Institute with regard to economic competition
• IFT agrees to submit for public consultation the project to adapt the Policy for the Transition to Digital Terrestrial Television between July 18th and August 8th
• IFT issues the Regulatory Provisions to which the procedures are subject that the Institute resolves in the field of economic competition, derived from the Federal Antitrust Law
• The President Commissioner approves to turn antitrust issues that apply to other members of the Plenary, on a rotational basis, to serve as Speaker Commissioners

During an extraordinary session held yesterday, the Plenary of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) approved the Call to Tender and Bases of the public bidding process for granting concessions to occupy the geostationary 113 ° West and 116.8 ° West orbital positions and use the associated extended C and Ku frequency bands, as well as the emission rights and reception signals for the provision of satellite capacity for the fixed-satellite service.

The orbital positions to be tendered have coverage in the national territory, and are for commercial  satellite services, such as dedicated data links, DTH and links between corporate.

Those interested in participating in this tender must obtain favorable opinion from the IFT in economic competition, which must be presented in accordance with the corresponding instructions, which also was approved yesterday by the Plenary.

The Bases, Appendices and Annexes, as well as the instructions will be available for consultation and free download on the IFT website from July 18th this year.

With this bidding process, IFT promotes the participation of more competitors in the satellite market, which will result in greater investment, technological development, and better quality and price in the provision of services.

Additionally, in order to adapt the administrative arrangements with respect to the transition to Digital Terrestrial Television (Televisión Digital Terrestre, TDT) to be consistent with the Nineteenth transitory article of the Decree which is issued by the Federal Telecommunications and Broadcasting Law, published on July 14th this year in the Federal Official Gazette, the IFT Plenary resolved to submit for public consultation the draft entitled "Policy for the Transition to Digital Terrestrial Television", prepared by the Radio and Television Systems Unit.

This exercise will allow to know the comments, proposals and opinions of stakeholders and society in general about the content of the draft Policy, which will be evaluated by the Institute and, where appropriate, incorporated into the document to strengthen it. The Institute will publish on its website a document that addresses in general the comments, views and proposals received within the period of consultation, specifying which ones resulted in adjustments to the draft Policy, which in turn is subject to consideration by the Plenary.

The public consultation will take place in the period between July 18th and August 8th of 2014, and both the draft policy and a format for the submission of contributions will be available to interested parties, which will be received, in writing, through the IFT webpage at any time during the period of consultation, or at the Filing Office of the Institute on July 18th, as well as in the period covered from August 4th to 8th this year.

Once the public consultation closes, the Radio and Television Systems Unit, within the next 10 working days, shall submit the draft deemed result of this process to consideration of the Plenary, to be adopted and published the "Policy for the Transition to Digital Terrestrial Television" in the Official Gazette of the Federation (Diario Oficial de la Federación, DOF).

Also in the broadcasting field, in strict compliance to record number R.A. 21/2014, from relief trial 44/2014 promoted by Luis Carlos Mendiola Codina, the IFT Plenary voided the provisions the resolution adopted in its 1st Extraordinary Session, held on November 8th, 2013, as well as the consequences arising from it.

Additionally, upon the entry into force of the new Federal Antitrust Law on July 7th, the Rules derived from the previous norm are ineffective until this has been repealed and, in use of the powers conferred by article 28 of the Constitution and article 12 of this Law, the IFT Plenary agreed to issue the Regulatory Provisions to which the procedures will be subject that this regulator resolves with regard to economic competition.

With these provisions, the IFT offers legal certainty to economic operators regulated given that this legal instrument is necessary to achieve an effective implementation of the procedures provided for in the Federal Antitrust Law and that this regulatory body effectively meets its function of authority in the field of economic competition in the broadcasting and telecommunications sectors.

The Federal Antitrust Law, while envisaging to carry out public consultation for the issuance of these Provisions, also includes the possibility of exempting from it in the case of situations that so require.

For this reason, it is necessary to issue the Regulatory Provisions, in order to have the legal tool to effectively fulfill its role of authority in the field of economic competition in the broadcasting and telecommunications sectors and exercise the incremental powers not provided for in the repealed law.

In addition, in its commitment to transparency and participation of the citizens, the Institute will shortly carry out public consultation on the Regulatory Provisions on economic competition, in order to receive the views and comments of stakeholders that will allow to strengthen the document and issue a new one in a period not exceeding six months from the entry into force of the Federal Antitrust Law, which will occur on January 7th, 2015.

The Plenary also approved that the President Commissioner, in exercise of his powers, turn the issues of economic competition in the assumptions that thus correspond to other Commissioners, which will act as Speaker Commissioners, on a rotational basis, in accordance with articles 83 fraction VI and 106 fraction IV of the Federal Antitrust Law. The strict order will be the responsibility of, as stipulated by law, the appointment of Commissioners, and that should be understood in accordance with the period of their appointment, so it shall be in the following form: Luis Fernando Borjón Figueroa, followed by Ernesto Estrada González, Adriana Sofía Labardini Inzunza, María Elena Estavillo Flores, Mario Germán Fromow Rangel and Adolfo Cuevas Teja, starting equally and again, once each cycle terminates.

The IFT Plenary approves the format for text messages that TELCEL will send to its users when they purchase airtime credit

• Each time that a Telcel prepaid time user purchases airtime, the user will receive a text message with the deposited amount, another with the accumulated balance available at that time and a third with the basic applicable rates
• The Institute determines non agreed interconnection conditions of various concessionaires of public telecommunications networks
• IFT resolves that 27 AM radio stations will continue to transmit in this band in order to ensure the continuity of the radio service in the towns where they operate
• The Quarterly Report of Activities for the period April - June is presented

As part of the obligations imposed on preponderant economic agents in the telecommunications sector, the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) established user protective measures, including delivery of clear information to subscribers about contracted services fees and products billed by these companies.

With this respect, at its ordinary session held yesterday, the IFT Plenary approved the format of text messages that Telcel will send users on prepaid or postpaid mixed schemes when they purchase airtime, in accordance with the provisions of the forty-third provision of measures applicable to this preponderant economic agent.

Therefore, the short messages that Telcel will send, and which will be free to the user, will consist of 1) the amount paid; 2) the accumulated balance including the payment, and 3) the basic rates applicable to the prepaid scheme that the user has contracted, both for the local service, long distance, SMS and Internet megabytes.

The obligation to deliver the short messages with information is of great importance for prepaid subscribers so they have the information required on phone spending, given that users receiving the mobile service in this scheme do not have a monthly bill they can review for the use or the rates paid for them, or if there were any change in prices.

The company must comply with this implementation over no later than 60 days after being notified of this resolution.

In addition, Telcel will be required to present the short message format corresponding to the information of the international roaming rate which it will send to users when they purchase airtime abroad.

Additionally, six resolutions to resolve disagreements on interconnection between concessionaires of public telecommunications networks were emitted in this session.

Two of these resolutions refer to the termination of switched services for mobile users under the "calling party pays" scheme: 1) NII Digital, S. de R.L. de C.V. and Comunicaciones Celulares de Occidente, S.A. de C.V., Sistemas Telefónicos Portátiles Celulares, S.A. de C.V., Telecomunicaciones del Golfo, S.A. de C.V., SOS Telecomunicaciones, S.A. de C.V., Portatel del Sureste, S.A. de C.V., Iusacell PCS, S.A. de C.V., Iusacell PCS de México, S.A. de C.V. and Operadora Unefon, S.A. de C.V., and 2) NII Digital, S. de R.L. de C.V. with Pegaso PCS, S.A. de C.V. In both cases, an interconnection rate of $0.3214 pesos per minute was approved, applicable from January 1st to December 31st, 2012, in which companies must pay in a reciprocal manner was adopted.

Similarly, the Plenary determined the non-agreed interconnection conditions between Operbes, S.A. de C.V., Bestphone, S.A. de C.V., Cablevisión, S.A. de C.V., Cablemás Telecomunicaciones, S.A. de C.V., Cable y Comunicación de Campeche, S. A. de C.V., and Grupo Iusacell companies, resolving that the rate for termination services under the "calling party pays" scheme, that mobile networking companies must pay will be $0.3214 pesos per minute, applicable from January 1st to December 31^st, 2012. Meanwhile, the interconnection rate which Grupo Iusacell companies will pay to the referred counterpart for the same period is $0.02432 pesos per minute, for switched termination services of fixed users.

In addition, three interconnection disagreements were resolved separately between Televisión Internacional, S.A. de C.V. (TVI) with the following concessionaires 1) Grupo Iusacell companies; 2) Pegaso PCS and 3) Radiomóvil Dipsa, S.A. de C.V. It was determined for all three cases that TVI must pay a fee of $0.3214 pesos per minute, valid from January 1st to December 31st, 2012 to the above mentioned concessionaires of mobile and these, in turn, will have to pay a fee of $0.02432 pesos per minute for switched termination services to fixed TVI users.

In the broadcasting field, the Plenary determined 27 AM radio stations, associated with changes to the FM frequency, which will continue operating in the AM band, until the Institute determines that the provision of the broadcasting service in all the populations of the area covered by these stations is guaranteed based on technical studies conducted by the Radio and Television Systems Unit.

This resolution achieves that small communities in the country that only have AM coverage continue communicating through radio, based on provisions of the Sixth item of the "Agreement which establishes the requirements to carry out the change of authorized frequencies to provide the radio service and operating in the amplitude modulated band, in order to optimize the use, application and exploitation of a public domain asset in the transition to digital radio", published in the Federal Official Gazette on September 15th, 2008.

On other issues, the IFT Plenary resolved to issue 24 permission titles subject to the endorsement for the use of a broadcasting frequency for official purposes through different radio stations in the frequency modulated band, of which 21 are for the Government of the state of Sonora, two for Tabasco and one for Puebla.

Likewise, the Institute determined to grant three titles of permission subject to endorsement to use a frequency modulated sound broadcast with cultural purposes in the FM band, two of which are for universities of Colima and Guanajuato, respectively, and another one for an individual.

The IFT Plenary also presented its Quarterly Report of Activities for the period April - June, which will be available for consultation on the Institute's website in the coming days. This document realizes the follow-up to the "180 days Schedule", of institutional projects and various actions associated with the coordination projects with the Federal Executive.

Finally, the Plenary approved modification to the Organic Statute, to comply with the provisions of the new Federal Law of Economic Competition.