The Telecommunications and broadcasting reform proposal disrupts the economic competence regime, and establishes the direct allocation of radio spectrum concessions for commercial use to dependencies and entities of the Executive without consideration, according to representatives of the sector.
The National Chamber of the Electronic Industry, Telecommunications and Information Technology (Canieti) presented in a broad position that the initiative, in the legislative process in the Senate, foresees the granting of commercial concessions to the Federal Executive to compete directly in the retail market.
The proposal, he explained, suggests that the Government provides services to end users for commercial purposes, or through a private public association, which refers that nothing prevents the government from providing non -profit services to end users through public use concessions.
He affirmed that the above would mean disrupting the economic competence regime because it would be allowed to allocate public resources to compete in preferential conditions only for its status as government and regulatory entity, to the detriment of private investment.
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In addition it would give advantages and without prior regulatory impact analysis, in the payment of rights for the use or use of the 700 MHz band of the radio spectrum compared to the rest of the public telecommunications service providers, which have to pay 10 times more for the use of similar bands of the radio spectrum of
Telecommunications.
He argued that the commercial exploitation of radio spectrum would be allowed without having carried out the public bidding process ordered by article 28 Constitutional, which would be in conflict with standards for the protection of investment treaties held with more than 30 countries, the TMEC and the TPP, which would make it impossible for the State to provide services in equitable conditions.
The Chamber added that the wholesale network could obtain discounts on spectrum costs and access to budgets and public goods, of those who do not enjoy their competitors in the market.
He pointed out that the initiative establishes the direct allocation of radio spectrum concessions for commercial use to dependencies and entities of the Executive, without consideration.
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At this point the Canieti explained that the Government could directly obtain concessions and spectrum bands for public use, so that it can provide services for the fulfillment of its purposes and powers, but those concessions and bands of the spectrum of public use cannot be exploited commercially, given its nature of providing non -profit services.
He added that the Constitution states that “the radio spectrum concessions will be granted by public tender” and that the TMEC states that “when the spectrum for commercial telecommunications services is attributed, each party will seek to have an open and transparent process that considers the public interest, including the promotion of competition.”
He argued that the granting of concessions of radio spectrum bands for commercial use by direct allocation, without a bidding process, which entails the payment of a consideration derived from the competitive process, implies an unjustified preferential treatment in favor of the Government and to the detriment of the private sector, which is violated the principle of neutrality to the competence that must govern the state action and that is protected by the Constitution.
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The sector represented in the CANITI pointed out that the reform proposal provides for the definition of digital platforms in a general and ambiguous way and, in a discretionary way, the blockade of them, proposing that the Agency for Digital Transformation and Telecommunications (which will replace the Federal Telecommunications Institute) issues guidelines for that purpose before the breach of “applicable regulations”.
He argued that the Constitution establishes as a human right access to the Internet, to freedom of expression without prior censorship and the right to free information.
Therefore, the blockade of digital platforms should be clearly regulated in the legislation itself with objective and proportional criteria supported by the Constitution, and not subject to discretion
Administrative, or be considered as an available sanction.
He pointed out that when establishing a specific regulatory framework for digital platforms, they could be the case that they are assimilated as if they were telecommunications service operators. A situation that can violate constitutional principles and international treaties, such as TMEC, which prohibit imposing discriminatory or excessive regulatory requirements for added value services.
He considered that establishing a rigid definition for a constant evolution sector, can limit innovation, distort competition and affect Mexico’s competitiveness in the global digital environment.
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