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Mexican
Telecom
Liberalizing
Trade
By:
Mexico Embassy SE-NAFTA Office
Over
the last decade
Mexico
has taken a series of significant steps to
liberalize its telecommunications sector, looking forward to
promote and consolidate competition.
The first step was taken
in 1989 when
Mexico
opened the telecom sector
to foreign participation. Next in 1991 came the privatization of
Telmex, the majority state-owned telephone monopoly at that time.
In 1994, the liberalization process continued with NAFTA.
The disciplines regarding telecommunications (Chapter XIII)
established that public telecommunications, transport, networks
and services are available on non-discriminatory terms for firms
and individuals that use those networks to conduct their business.
Mexico
liberalized the
cross-border provision of foreign investment in all
telecommunications value-added services, including the Internet.
Another significant step
came in 1995, when legislation was passed to create Mexico’s
Federal Telecommunications Commission (COFETEL) and to establish a
new legal framework that regulates public networks (including all
telephone services) and satellite communications.
As a result of the WTO
telecom negotiations, in 1998
Mexico
further liberalized the
provision of these services. With these measures, many new service
concessions have been granted for local and long distance wireless
services.
Consequently, the demand
for basic services has increased, the number of mobile subscribers
has surpassed the number of fixed line subscribers, and Mexican
customers can benefit from higher prices.
COFETEL considers that
expanding basic telephone service, which reaches only 36 percent
of households, is a priority. In
Mexico City
, with a population of
more than 20 million people, services reach only 66 percent of
homes, but that figure drops to 12 percent in rural states such as
Oaxaca
and
Chiapas
. The expansion
possibilities are evident.
The telecommunications
sector is an area with a high growth rate, and it is key to
improving...
...Continued
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