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América Móvil: network interconnection in Mexico

The main change related to network interconnection in Mexico was the elimination of the “zero tariff”, an asymmetric regulatory measure imposed by the Federal Telecommunications Institute (IFT) on América Móvil, according to which it could not charge termination fees to its competitors.

The “zero tariff” was eliminated on January 1, 2018 for mobile service and on January 1, 2019 for fixed service.

Since that date, América Móvil can charge termination fees, which are regulated by the IFT.

América Móvil

The rest of the operators freely agree on the conditions for interconnecting their networks, including tariffs.

If they fail to agree, the IFT may determine these conditions.

The IFT only sets ceilings for fixed service tariffs provided by the Preponderant Economic Agent (AEP) and they must be approved by the AEP.

Retail tariffs are subject to VAT (16%) and IEPS (3%); Internet access services through the fixed or mobile network, as in 2017, are exempt from IEPS.

In 2020, to meet the needs of their customers during the pandemic, some operators introduced plans with preferential rates.

All operators committed not to suspend service for non-payment.

The Mexican telecommunications market shows a high degree of concentration; there is still a preponderant economic agent whose operations are subject to asymmetric regulation measures, in order to promote competition among all operators.

During the last five years, as a result of the application of these measures, a certain level of competition was achieved in fixed services; however, this same result was not seen in the mobile services market.

 

Redacción Opportimes

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