Injecting Competition in Broadcasting through MCMO Regulations: Some Recommendations for Mexico

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Martin Cave, Alexander Elbittar, Ernesto Flores-Roux, Elisa Mariscal, Feb 26, 2014

The new telecommunications regulator in Mexico, Instituto Federal de Telecomunicaciones, recently issued a public consultation on its draft regulation for must carry and must offer conditions in the broadcasting sector. This, together with the recent Constitutional reforms on Telecommunications and Broadcasting, represents an unprecedented opportunity to instill the sector with much needed competition.

For instance, in broadcasting, free-to-air TV is dominated by two main operators, Televisa and TV Azteca, each holding approximately 65 and 25 percent audience share, respectively. Both enjoy also a high level of concentration in infrastructure, audience, and publicity. Something similar occurs in telecommunications, where there is a high level of concentration: Telmex, the incumbent fixed-line operator, has close to 80 percent share of the fixed-line market, and Telcel, the incumbent’s mobile affiliate, accounts for almost 70 percent of mobile subscribers.

The new regulatory effort in Mexico’s telecom sector also allows for a comparison of the current state of regulation relative to other economies. We take the cases of Argentina, Australia, Brazil, Canada, Chile, the European Union (Ireland and the United Kingdom), India, Peru, and the United States, as illustrative of the different factors that lead to the decision to desi…

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