Jose Antonio Prado and Carlos Ochoa are Partners and
Alberto Esenaro Arteaga and Lilia Euridice Palma Salas are
Associates in the
Mexico City office.
Mexico's Telecom and Antitrust Federal Courts have issued
three resolutions declaring that the model used by the
Comisión Federal de Telecomunicaciones (COFETEL) for
calculating interconnection costs for fixed and mobile services
from 2012 to 2014 was "reasonable."
The Courts held that COFETEL's decision of using the
hypothetical operator for such calculation was not arbitrary and
that the public policy was fully justified. The ruling gives legal
support to the "bottom-up" model of costs for
constructing the most efficient network in order to determine
interconnection costs with a market share of 33 percent, based on
the fact that no operator could provide reliable information to
reflect the market. The decision also confirms that international
practices regarding economics and telecommunication can be used to
justify the decisions of regulators.
In 2013, the Federal Telecommunications Institute, or Instituto
Federal de Telecomunicaciones (IFT), was created as a
constitutional autonomous organization at the same level of the
executive branch. It was given the authority to independently rule
the telecommunications and broadcasting sectors in technical and
antitrust issues, replacing COFETEL (technical) and the
Comisión Federal de Competencia (antitrust).
Based on the Courts' rulings of 2014, IFT is a substitute
authority by constitutional mandate, in charge of enforcing
previous acts of regulation and antitrust matters in the
telecommunications and broadcasting sectors.
These resolutions provide guidance on IFT's authority for
using the economic theory in support of 1) its decisions regarding
interconnection disputes and imposing asymmetric measures on
preponderant agents or agents with substantial market power, and 2)
measures when granting or modifying concessions.
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