On July 24, 2015, the Federal Telecommunications Institute (the "IFT" for its acronym in Spanish) published in the Official Gazette general guidelines to grant concessions for radio broadcasting and telecommunications, as well as rules to obtain permits to provide telecommunications and radio broadcasting services without being concessionaires.
The purpose of the guidelines is to establish the terms and requirements to be met by companies interested in obtaining a concession from the IFT to provide broadcasting and telecommunications services.
For holding a concession, it will be required to specify the type of concession being requested, which may be for commercial, public, private or social purposes. Besides, the project must be justified taking into account the main equipment and transmission means that will constitute the network or system planned for starting operations, and the technical, economic and legal capacity should be also supported.
The IFT will evaluate and determine whether approving or not a request for a concession within 60 calendar days following the day on which the request has been filed with the IFT.
In the other hand, permits will allow to establish, operate or exploit a telecommunications service trader, without being deemed a concessionaire, so the trader can install, operate or exploit earth stations to transmit satellite signals, install telecommunications equipment and transmission means crossing Mexico border, exploit the rights of emission and reception of signals and frequency bands associated with foreign satellite systems that cover and may provide services within Mexico, and temporarily use spectrum bands for diplomatic visits.
The IFT explained that the permits will be granted to Mexican companies without limitation to foreign investment, for a 10-year period and may be renewed for equal periods, provided that, the permit holder requests such renewal in writing within the year prior to the beginning of the last fifth fraction of the permit in effect, and that it complies with the conditions set forth in the applicable provisions and previously agrees to meet the new conditions, if any, determined by the IFT.
The lawyers of the telecommunications area of this firm are available to answer any questions or to provide any further information on the above matter.
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