Mexico: Supreme Court to resolve ‘Zero Rate’ question in telecom

Mexico’s Supreme Court of Justice (SCJN) has announced that it will soon resolve one of the most controversial issues raised by the 2013 reform to telecommunications – the ’Zero Rate’, established by art. 131 of the Federal Law of Telecommunications and Broadcasting. This rule establishes that the economic agents designated as preponderant (in this case Carlos Slim’s América Móvil), will not be allowed to charge their competitors for calls terminating in their network.
 
Should this article be declared unconstitutional, the SCJN would have to give the sector regulator, the Federal Telecommunications Institute (IFT) the power to regulate these rates directly.
 
The possible resolution has caused varied reactions among América Móvil’s competitors, warning of possible adverse effects; “It has been proven over time that the most rapid and efficient way to bring more advanced networks to a country’s consumers and businesses is through free and open markets, private investment and growth-oriented policies,” said AT&T. “The effective and lasting implementation of these reforms will generate greater investment, which will benefit consumers and businesses, as well as a healthier environment for economic growth.”
 
Meanwhile, 3rd place Telefónica says that “the business model of our competitors has been built on the permanence of the existing legal framework, so that its disappearance would have serious consequences on the sustainability and composition of the sector.”

Full Content: El Economista

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.