Mónica Aspe Bernal Head of the Information Society Office Ministry of Communications and Transportation [email protected] @maspeb First North American

Mónica Aspe BernalHead of the Information Society OfficeMinistry of Communications and [email protected] @maspeb

First North American Sustainable Economic Development Summit

Energy, Infraestructure, Transportation, Logistics and Border Facilitation

Las Colinas – Irving, Texas

www.reformas.gob.mx

mailto:[email protected]

https://twitter.com/nachoperaltacol


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Reforms in Action

www.reformas.gob.mx

Much has been done in the past 20 months. Mexico

has the lowest tax take in the OECD as a percentage

of GDP: a fiscal reform has started to broaden its

sources of revenues. Measures to shake up the

telecoms and broadcasting industries last month

prompted America Móvil to announce it will divest

assets to avoid antitrust pricing regimes. Teachers will

face more scrutiny, banks more competition…

The Economist, 2014.

3www.reformas.gob.mx

• During President Peña’s administration 11 constitutional reforms have been promulgated.

• The objectives of these reforms are:

1. To increase productivity to boost economic growth in the country

2. To reinforce Mexicans’ rights

3. To strengthen Mexico’s democratic regime

• The legislative phase of the reform process is now completed.

Next comes implementation

4

Reforms in Action

www.reformas.gob.mx

Enables domestic and foreign firms to drill in deepwater

fields and shale beds. Existing regulators to be strengthened.

Access to broadband is recognized as a constitutional

right for all Mexicans.

Creates new competition authorities. Increases

sanctions for offenders.

Reforms in Action

Energy Telecommunication and Broadcasting

Anti-monopoly

5

Increases tax collection base, cuts tax loopholes.

Fiscal

www.reformas.gob.mx

Reforms in Action

Encourages the creation of jobs through more flexibility.

Establishes better working conditions for Mexicans.

Introduces evaluation of teachers in order to improve

standards.

Creates a unified criminal justice model that ensures

that all Mexicans will be judged with the same

procedures.

Labor Education Unified Criminal Justice Procedures

6

Improves competition among Mexico’s banks. Strengthens

development banks.

Banking

www.reformas.gob.mx

Reforms in Action

Strengthens this instrument so that Mexicans can rely in an effective tool to defend their fundamental rights.

Allows reelection of members of Congress.

Increases oversight of local elections.

Strengthens the right of access to public information and promotes accountability.

New Injunction Law(Habeas corpus)

Political Transparency



Telecommunications and Broadcasting Reform

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Mexico had been left behind in telecommunications

Source: World Economic Forum, Reporte Information Technology 2013

The development of the telecommunications sector in Mexico has not been enough to improve productivity and welfare of the population

Infrastructure and digital contentNetwork Readiness Subindex

World Economic Forum

Cana

da

USA

Switz

erla

nd

Germ

any

Sing

apur

Repu

blic

of K

orea

Japa

n

Hong

Kon

g

Fran

ce

Barb

ados

Rusia

Pana

ma

Sout

h Af

rica

Chile

Braz

il

Arge

ntina

Mex

ico

Chin

a

Indi

a

0

1

2

3

4

5

6

7

8

6.8 6.8 6.76.5

6.2 6.15.8 5.8 5.8

5.3

4.74.4

4.2 4.2 4.24

3.5 3.5

2.8

Average: 5.1

www.reformas.gob.mx

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Diagnosis

“The welfare loss attributed to the dysfunctional Mexican telecommunication sector is estimated at USD 129.2 billion (2005-2009) or 1.8% GDP per annum.”OECD, Review of Telecommunication Policy and Regulation in Mexico

• Inefficient legal and institutional framework

• High level of concentration- In telecommunications and broadcasting one

single group concentrates 70% of the market

• Weak competition

• Poor level of infrastructure development

• High prices (among the highest consumer prices in the OECD)

• Low take-up of services

www.reformas.gob.mx

Causes

291 287

272

243 241 241 239

223

159 159150 148

137 137 136 135130 129 129 129 129 127 127

118111

101 10094 93

78 76 7569

4233

In ver sió n públ ic a per c ápit a en t el ec o mun ic ac io n es (Pr o medio an ual en dó l ar es; 2009-2011)

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Low Investment Levels

Source: OECD Communications Outlook 2013

Public Investment in Telecommunications (per capita) 2009-2011

www.reformas.gob.mx

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Mobile Broadband Penetration

To be compared with OECD countries may be a ambitious, however the result is not different if we are compared with Latin American countries.

www.reformas.gob.mx

Source: World Bank, 2012

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Regulation & Antitrust

• Direct foreign investment

• Antitrust regulation

• Must carry/ Must offer

Institutional framework

• Independent regulator

• Specialized courts

Reinforcement of Mexicans’ rights

• Right of Internet Access

• Consumers’ rights• Audiences’ rights

www.reformas.gob.mx

Constitutional Reform

To reverse this situation, the Federal Government with the support of the main political forces in Mexico, implemented a radical change in the legal framework of the sector

Telecommunications Infrastructure

• National Wholesale Backbone

• Open Access Mobile Network

• DTT• Free Internet

Access in Public Places

• Mexsat


First Positive Outcomes

Elimination of long distance calling fees in mobile and fixed line (January 2015).

Customers will be able to switch phone companies without additional charges and in less than 24 hours. Devices must be unlocked.

Free Internet Access in 250,000 parks and public places (currently up to 45,000).

Users will be able to check their cell phone balance without charges.

Prepaid cellular phone balances will now be good for one year and not just two months.

Strong sanctions for agents that obstruct competition

The independent regulator (IFT) is now in full operation.

Specialized telecommunications courts are now in full operation.

Anti-trust regulation for dominant agents in telecommunications and broadcasting has been issued.

Direct foreign investment is now allowed (100% telecom; 49% broadcasting).

National Wholesale Backbone

(including CFE´s fiber optic network)

Wholesale Open Access Mobile Network (700

MHz Band)

México Conectado: Open Internet

access to all public schools, health

centers, libraries, parks

Main initiatives to achieve universal access

Transition to Digital

Television (TDT)

MexSatMexican Satellite

Constellation

The Mexican Government is currently implementing the most ambitious infrastructure projects in the history of telecommunications in the country. They total an investment USD 14 billion.

www.reformas.gob.mx

Telecommunications Infrastructure Projects

15

16

• Coverage and capillarity: from 25,000 km to 60,000 km

• Access points: from 114 to more than 900

• Redundancy: through other rights of way (highways, railways, oil pipelines)

• Wholesale: open and non discriminatory network. Fosters competition, does not compete

• Investment: USD 758 million

P del Carmen

Nuevo Laredo

León (m)

Saltillo

Aguascalientes

Guadalajara

Silao

Celaya Querétaro

Yautepec

TexcocoTulaPto. Vallarta

Tepic

Mazatlán

Durango

Gómez Palacio

y Torreón

Nogales

Hermosillo

Guaymas

Cd. Obregón ©

Navojoa Los Mochis

Guamuchil

Culiacán ©

Cd. JuárezEnsenada

ReynosaMatamoros

Cd. Victoria

Altamira © - Tampico

Acapulco

Veracruz

Oaxaca

Cd del Carmen

Campeche

Cárdenas

Mérida

Cancún

Coatzacoalcos ©

Zacateca

s

Chihuahua

Orizaba

Xalapa

Poza Rica

Tuxtla Gutiérrez ©

Morelia

Monclova

Chetumal

Delicias

Parral

Minatitlán (No)

Tecate

Camargo

Cd. Cuauhtémoc

P Peñasco

Caborca

Sta. Ana Cananea

NacozariCasas Grandes

Agua Prieta

La Paz

Cd. Constitución

San José del Cabo

Cabo San Lucas

P. Negras ©

Sabinas y

Nva. Rosita

Uruapan

L CárdenasV de Bravo

Salina Cruz

Juchitán

M Romero ©

Villahermosa

Tapachula ©

Manzanillo

Colima Puebla

Moctezuma

TopolobamboLinares

Cd GuzmánOcotlán

Irapuato

Zamora

Escárcega

Monterrey

México

San Juan de los Lagos

Fresnillo

Guanajuato

National Wholesale Backbone

www.reformas.gob.mx

• Wholesale network (4G) with national coverage on the 700 MHz band

• Public Private Partnership

• No restrictions for foreign capital investments

• Public buildings available for installation of infrastructure

• Coverage for over 95% of the population

• Reduce entry barriers for the mobile broadband market

• Promote competition both in infrastructure and services

• Benefit consumers through internationally competitive prices

• Estimated investment: USD 10 billion

Open Access Mobile Network


• Guarantee the Constitutional right of access to information.

• Liberalize the 700 MHz Band by December 2015.

• Aid almost 14 million low-income households through the distribution of smart-ready TVs.

• Provide households with a better signal & audio TV, plus a larger diversity of contents.

• Provide the digital devices needed for the Regulator´s tender for two national TV channels.

• Generate energy consumption savings (twice the daylight savings time)

• Can be used as smart TVs for Internet access.

• Estimated investment: USD 2 billion

Transition to Digital Television

TDT is an innovative policy for developing countries, where a large part of the population doesn´t have the economic resources to substitute their analogue TV for a digital one.


Mexico Conectado will:

• Provide free broadband Internet access to all public schools, health centers, libraries, parks and other public buildings in the country (aproximately 250,000) by 2018.

• Reduce service costs by aggregating demand.

• Use any technology based on a cost-efficiency criteria.

• Install hotspots in unserved and underserved areas.

• Provide an access platform for the e-government, e-health, e-education and open data initiatives in the National Digital Strategy (EDN).

• Estimated Investment: USD 1.5 billion

Mexico Conectado



National Infrastructure Program

The National Infrastructure Program will position Mexico as a Global Logistic Platform, taking advantage of its privileged geographical position and its free trade agreements with 44 countries.

The goal is to transport people, goods, services and data efficiently and safely through the US-Mexico border.

• Telecommunications reform & infrastructure initiatives• 46 new highways• Double our ports capacity by 2018• 8 new passenger railroads including 3 high-speed railroads• Mexico City’s new airport

The National Infrastructure Program totals an unprecedented investment of USD115 billion.

The reforms will fuel Mexico´s economy. A stronger economy will require these logistics and transport platforms in order to reach its full potential.

www.reformas.gob.mx

Thank you

Mónica Aspe BernalHead of the Information Society OfficeMinistry of Communications and [email protected] @maspeb

mailto:[email protected]



Documents

Mónica Aspe Bernal Head of the Information Society Office Ministry of Communications and Transportation [email protected] @maspeb First North American