4 Access and Interconnection

4.1 Is network-to-network interconnection and access mandated, and what are the criteria for qualifying for the benefits of interconnection?

The FTL establishes that concessionaires must adopt open designs to allow interconnecting and interoperating its networks.

Concessionaires must interconnect their networks through an interconnection agreement.

4.2 How are interconnection or access disputes resolved? Does the national regulatory have jurisdiction to adjudicate and impose a legally binding solution?

The Telecommunications Commission has the authority to determine its final terms and conditions if the parties fail to reach an agreement after a term following notice given to the Telecommunications Commission that such an agreement began to be negotiated.

4.3 Are charges for interconnection and/or network access subject to price or cost regulation and, if so, how?

Prices related to interconnection are not subject to regulation. The parties are, however, compelled to act under interconnection reciprocity between concessionaires providing similar services and may not provide discounts on volume nor discriminatory practices. Rates are subject to registration.

4.4 In the local loop are existing owners of access infrastructure required to unbundle their facilities and if so, on what terms or regulatory controls?

It is not mandatory to unbundle their facilities

4.5 How are existing interconnection and access regulatoryconditions to be applied to new network technologies suchas so-called next generation networks or IP-basednetworks?

By the issuance of administrative guidelines as well as technical standards.

5 Price and Consumer Regulation

5.1 Are (i) retail or (ii) wholesale price controls imposed on any operator in relation to fixed, mobile, or other services?

No, they are not.

5.2 Is the provision of electronic communications services to consumers subject to any special rules and if so, in what principal respects?

Consumer Protection Rules, enforced by the Consumers Protection Agency, apply to any service rendered to final users, including telecommunication services.

5.3. Are there any rules governing use and retention of customer call information?

Consumer call information may be used for directories if the consumer has not asked that it remain confidential. Data may not be otherwise placed into the market.

6 Numbering

6.1 How are telephone numbers and network identifying codes allocated and by whom?

Telephone numbers and network identifying codes are allocated by the Telecommunications Commission and through Signal, Number and Technical Plans.

6.2 Are there any special rules which govern the use of telephone numbers?

No, other than those mentioned in question 6.1 above.

6.3 How are telephone numbers made available for network use and how are such numbers activated for use by customers?

Numbers are given by the Telecommunications Commission and activation is made by allocation of a number to a contract.

6.4 What are the basic rules applicable to the ‘porting’ (i.e. transfer) of telephone numbers (fixed and mobile).

FTC is currently working in the elaboration of a Portability Plan that will apply to the porting of telephone numbers in Mexico

7 Fees

7.1 What fees and levies are payable and to whom with respect to the grant of a licence or other authorisation for the installation or use of network infrastructure or the provision of communication services?

Depending on the specific telecommunication service a governmental fee applies under the Federal Law of Fees.

8 Submarine Cables

8.1 What are the main rules governing the bringing into Mexico’s territorial waters, and the landing, of submarine cables? Are there any special authorisations required or fees to be paid with respect to submarine cables?

The Regulation for the Use and Management of Territorial Sea, Navigable Routes, Beaches, Terrestrial-Maritime Federal Zones and Terrains is the main rule applicable, and it creates the obligation to have a telecommunications concession in order to install a submarine cable in Mexican territorial waters.

9 Radio Frequency Spectrum

9.1 Is the use of radio frequency spectrum specifically regulated and if so, by which authority?

The Ministry is the main authority in charge of regulating on the radio frequency spectrum under the Federal Telecommunications Law.

9.2 In the grant of spectrum rights are distinctions made between mobile, fixed and satellite usage?

The Frequency Attribution National Chart, allocates different uses to diverse frequencies of the spectrum, based on ITU recommendations and bilateral coordination arrangements.

9.3 How is the installation of satellite earth stations and their use for up-linking and down-linking regulated?

Uplink stations require a permit. Downlink-only stations do not require any permit or concession.

9.4 How is the use of radio frequency spectrum authorised in Mexico? Do the procedures available include spectrum auctions and comparative selection of candidates?

Yes, auctions are used. However, the Supreme Court recently ruled auctions as unconstitutional. The Ministry and the Congress will have to create new competitive and comparative processes in lieu of an auction.

9.5 Can the use of spectrum be made licence-exempt? If so, under what conditions?

No, it cannot.

9.6 If licence or other authorisation fees are payable for the use of radio frequency spectrum, how are these applied and calculated?

There is a fee imposed on the amount of capacity used calculated on a per MHz fee.

9.7 Are spectrum licences able to be traded or sub-licensed and if so on what conditions?

Spectrum licences may be assigned in whole or in part only after 3 years have lapsed after the date of grant and certain conditions apply as noted before

10 Interception

10.1 What are the essential rules applicable to the interception of messages, traffic data and other call records? Which rules apply to the retention of such call data, and over which period(s)?

It is prohibited to intercept, disclose, or make unauthorised use of messages, data or record without a Court order.

11 The Internet

11.1 Are services over the Internet regulated in any different way to other electronic communications services? Which rules, if any, govern access to the Internet at a wholesale
and/or retail level?

Yes. Internet is subject to a Value Added registration, thus conditions imposed on concessions and permits do not apply.

This policy may change as voice services over the Internet expand without the same regulatory burdens as in an ordinary telephone concession.

11.2 Are there any rules to prevent, restrict or otherwise govern Internet or email communications, in particular, marketing and advertising communications?

The Consumer Protection Law governs commercial relationships between suppliers and consumers in transactions carried out through the use of electronic or optical means or through any other technology.

12 USO

12.1 Is there a concept of universal service obligation; if so how is this defined, regulated and funded?

There is no regulation establishing a universal service obligation. However, there is a general obligation to have social coverage of public networks. An agreement was reached by operators and the Ministry to create a trust that will fund universal services-related costs.

13 Foreign Ownership Rules

13.1 Are there any rules restricting direct or indirect foreign ownership interests in electronic communications companies whether in fixed, mobile, satellite or other wireless operations?

The foreign investment regulation establishes, as a general rule, that foreign investment within the telecommunication industry is limited to 49% except for cellular telephone, that has no limitation.

Activities restricted by this rule are the use of radio/electromagnetic spectrum in Mexico, the installation and operation of public telecommunications networks, the occupation of geostationary orbital slots, and the emission and reception of signals from foreign satellites.

Foreign investors may invest in the capital of Mexican companies engaged in the restricted businesses referred to above provided they do so as minority shareholders or hold shares with limited voting rights, and in either case, agree to consider themselves as Mexican nationals with respect to their interest in the company and not to invoke the protection of their own government in the event of a dispute, under penalty of forfeiting their interest to the state for violation of the agreement.

Notwithstanding the aforementioned, the applicable foreign investment regulation establishes that neutral investment can be made in Mexican entities in order to allow foreigners to hold greater economic interests in the capital of Mexican companies in restricted areas; such investments are not considered as direct foreign investment and are not considered in the 49% foreign investment limitation.

14 Future plans

14.1 Are there any imminent and significant changes to the legal and regulatory regime for electronic communications?

Portability Technical Guidelines. These will define the signalling formats that will allow local and long distance networks to identify the concessionaires holding the origin or
destiny numbers.

Interconnection Technical Plan. This will establish the main guidelines and obligations by concessionaires in this matter.

Amendments to the Federal Radio and Television Law and to the Federal Telecommunications Law, resulting from recent Supreme Court rulings that held several provisions thereunder as unconstitutional.