Basham, Ringe y Correa, S.C.
  January 11, 2013 - Mexico

New Federal Government Standpoint on Telecommunications

One of the “Thirteen Presidential Goals” announced by President Peña Nieto when he took office last December is to promote 
competitiveness in the telecommunications sector. He said:  “It is essential to increase the economic competitiveness, specifically, in the telecommunications sector. Therefore, in the next few days I will send to Congress a bill of amendments to increase the economic competitiveness of telephone, data, TV and radio services. In the following months the Mexican Government will publish an invitation to bid for two new open TV networks, in order to implement such goal.”

“Telecommunication competitiveness will be achieved not only because it was a commitment, but also because I am 
determined to do so; that is my conviction. I am convinced that competition is good for Mexico.”
At the same time, the telecommunications sector is part of the 95 commitments of the “Pact for Mexico,” signed by President 
Peña Nieto and the three main political parties of the country, under which the Federal Government will implement a set of 
administrative actions and the political parties will support legislative amendments in order to attain the goals sought by these 
commitments.

The telecommunications commitments are the following:

* Develop a solid core of a telecommunications network: the intention is to provide the optimal use of the 700 MHz and 
2.5 GHz bands, by reclaiming underutilized frequencies or frequencies released from the transition to digital land-based 
television, that in due course will be the subject of a bidding process.

* Digital agenda: there is also an intention to assure broadband Internet access in public buildings (schools, health care 
facilities and community centers), and to encourage public and private investment in telehealth and telemedicine 
applications and in what is known as “electronic medical records.”

* Radio and TV competition: it is further intended to invite bids for more national open TV networks. Regarding this issue, 
it is considered that competition will be more effective with the participation of country-wide networks rather than with 
regional networks. The bidding process should be completed approximately in a year and a half (by June 2014), taking 
into account that it was one of the requirements to authorize the concentration of the mobile-phone market.

* Implementation of international operation criteria: the system called “must carry” will be implemented, which means 
that cable TV providers must include open signals free of charge, as well as a “must offer” system, which means that the 
open TV providers have the obligation to offer their signals to pay TV operators on a nondiscriminatory basis and at 
competitive prices .

* Telephone and data service competition: the telephone and data service activities carried out by dominant operators 
will be regulated, the barriers for the entry of new operators (“Interconnection Framework Agreement”) will be removed, 
and the joint offer of two or more services will be regulated according to international practices.

* Invitation to bid for the construction and operation of a wholesale shared telecommunication network: a 90 MHz 
network in the 700 MHz band to take advantage of the spectrum released by digital land-based television will be made 
the subject of a bidding process.

* Creation of specialized telecommunication courts: new courts will be created for the technical and efficient application 
of the legal framework governing this sector.

* Broadband: a constitutional amendment will be introduced to recognize the right of access to the band.

* Federal Telecommunications Commission (“COFETEL”): its autonomy and decision-making authority will be 
strengthened.

* Reorganization of telecommunication laws and regulations: the creation of a single statute will be proposed to provide 
for the implementation of measures to promote TV, radio, telephone, and data services competition.

The lawyers of the infrastructure area of our firm would be pleased to provide any further information or answer any questions 
you may have on the above.