Uncle Sam is not happy (again)
Oh, surprise. The United States Government is “concerned” about how the telecommunications market is developing in Mexico. Because? Because, according to them, there are barriers in competition and regulation. Wow, what a novelty. As if we didn’t know that the Mexican telecom market is a garden of delights where everyone plays on equal terms… or not.
The Office of the United States Trade Representative (USTR, for friends) points the finger of blame that, although the market opened between 2013 and 2014 (how far away that sounds!), new companies have to compete against a “dominant agent”. Who will be that mysterious agent? Well, if we consult The CIU, it turns out that Telcel controls 55% of the market. What a coincidence! Almost as if someone had designed the system to be that way.
The IFT disappears and nobody cares (well, the US does)
But it’s not just monopoly disguised as competition that bothers Washington. They are also concerned (oh, the drama!) by the disappearance of the Federal Telecommunications Institute (IFT). Because? Because, according to them, this could affect Mexico’s compliance with the T-MEC. Of course, because without an “independent” regulator (in giant quotes), who is going to ensure that the rules are followed? Do they trust that the market regulates itself? Ha!
The USTR report, with its pompous title of “2025 National Trade Estimate Report on Foreign Trade Barriers”, pulls no punches: the 2024 constitutional reform that eliminated the IFT has raised “major concerns”. Translation: “We don’t like it, change it.”.
The radio spectrum: liquid gold for the government
And if that were not enough, there is another detail that keeps residents to the north awake at night: the cost of the radio spectrum. According to the USTR, Mexico charges a substantial annual fee for spectrum, making it one of the most expensive in Latin America. But, be careful, it is not that there are no competitive auctions (how modern!), but that the Mexican government continues to see the spectrum as a gold mine. And the best international practices? Well, those seem to be just suggestions.
“This approach does not conform to international best practices,” says the USTR. Unofficial translation: “Stop charging so much, you misers.”.
So there you have it: the United States, the champion of free competition (except when it doesn’t suit them), pointing out the contradictions of the Mexican system. Will there be changes? Probably not. Will they continue to complain? Definitely yes.
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