Mexico
Answer ... (a) Telecommunications
Mexican law provides for two types of licences in order to provide telecoms services: concessions and permits. Concessions are issued by the Federal Telecommunications Commission (FTC) to enable the provision of public telecoms services. The Federal Telecommunications and Broadcasting Law provides for four types of concession:
- commercial use concessions;
- public use concessions;
- private use concessions; and
- social use concessions.
Permits apply to resellers of telecommunications services. Any other services are deemed unregulated and may be provided freely.
(b) Internet
An internet provider is not subject to a concession or permit, unless it provides services as a telecoms carrier or a reseller of telecommunications services, in which case it will be regulated by the Federal Telecommunications and Broadcasting Law.
(c) Media
The Federal Telecommunications and Broadcasting Law provides that broadcasting companies require a concession in order to provide media services.
(d) Social media
See question 3.1(b).
Mexico
Answer ... Concessions: The provision of telecoms services is subject to the grant of a concession. New sector participants must apply for a single concession (see below).
In the case of spectrum, frequency bands are subject to auction and a bidding process. The main change under the Federal Telecommunications and Broadcasting Law is that the chief consideration for the award need not be the economic component of the bid. The law has also shifted the focus of the determination of the floor price of bidding processes. The FTC determines the floor price based on the Ministry of the Treasury’s prior non-binding opinion in order to migrate from a revenue collection focus to an industry development-driven focus.
The FTC must publish an auction plan annually. Industry participants may comment on the plan and request that additional frequency bands be added or that the plan be refocused to address specific needs. As in the past, the state maintains sovereign control over the means of communication within telecoms networks.
A new feature incorporated into the Federal Telecommunications and Broadcasting Law is the ‘single’ (all-encompassing) concession for telecoms carriers. The single concession is effective for up to 30 years and is renewable subject to:
- an FTC ruling to the effect that the carrier is compliant with its obligations under its existing concessions; and
- the carrier’s acceptance of the FTC’s terms and conditions.
The acquisition of spectrum through auction is not the only means by which a concession holder can provide telecoms services using spectrum. The Federal Telecommunications and Broadcasting Law provides for two additional options:
- the leasing of spectrum between concessionaires; and
- the acquisition of spectrum from a competing carrier.
Both options require the FTC’s prior approval and the acceptance of certain obligations by the lessee or the purchaser of the spectrum – primarily:
- the joint and several liability of the lessee in connection with obligations provided for in the concession of the leased frequency bands; and
- continuity of service obligations where the purchase of spectrum comes with pre-existing obligations and additional obligations imposed by the FTC.
The FTC’s decision will include an analysis of the competitive effects of the lease or sale of spectrum.
Permits: Resellers and mobile virtue network operators (mobile virtual network enablers or mobile virtual network aggregators) must obtain a permit (not a concession) from the FTC in order to operate. A permit will be granted for up to 10 years and entitles the holder to:
- access wholesale services offered by concessionaires;
- sell its own services and resell those contracted on a wholesale basis; and
- access its own numbering or that of the wholesaler.
In addition, satellite landing rights (installation and operation of earth stations) and uplinks and downlinks associated with foreign satellites authorised to provide services in Mexico are now subject to a licensing process; whereas the prior telecoms law required a concession.
Mexico
Answer ... See question 3.2. As regards concessions, the application must contain:
- the identification and characteristics of the applicant (a commercial company), its bylaws and articles of incorporation, including the identities of investors;
- the characteristics of the business (eg, business plan, including investment commitments); and
- documentation that supports the applicant’s (or its principals’) technical and economic wherewithal, and its legal and administrative capabilities.
Mexico
Answer ... Regarding concessions, the application must be resolved within 60 days of filing. If the FTC decides that relevant information is missing, it will afford the applicant 30 additional business days to provide the missing information. If the FTC resolves to grant the concession, the interested party will have 20 business days to pay the applicable fees and the FTC will issue the concession title within 15 business days of payment. Finally, once the notification of authorisation has been granted, the FTC has 15 business days to record this in the Public Registry of Concessions.
Authorisation applications will be resolved by the FTC within 30 business days of filing. If this 30-day period expires without a resolution, a favourable resolution will be deemed to have been granted and the FTC must issue a resolution to that effect within 30 business days.
Mexico
Answer ... The basic ongoing obligations of concessionaires or permit holders are:
- to deploy/invest/provide the services proposed in the respective business plan; and
- to abide by the neutrality, interconnection, access and competition covenants provided in the respective concession or permit documents and the Federal Telecommunications and Broadcasting Law.
The penalties that may be imposed for breach of these obligations range from monetary penalties to revocation of the concession or permit.
Mexico
Answer ... See question 5.1:
- 30 years for concessions; and
- up to 10 years for permits.
The terms of concessions and permits may be varied with the prior consent of the FTC. A request for renewal of concessions and permits must be filed before the concession or permit expires.
Mexico
Answer ... Private and commercial concessions may be transferred to a qualified concession holder. However, this requires the consent of the FTC, which will essentially vet the new ownership of the concessionaire. The new concessionaire will be required to expressly accept the terms of the corresponding concession.
While there are no impediments to the transfer of permits, given that a permit to resell services is rather simple to obtain and readily available, in practice a new permit is obtained by the prospective purchaser, which concentrates only on the transfer of customers from one permit holder to the other. This transfer does not require the authorisation of the FTC.