Mexico Needs to Boost Competition in Telecoms Market—OECD
Taylor Reynolds, communication analyst and economist at the Organisation for Economic Co-Operation and Development (OECD) has warned that before Telmex is allowed to enter into the TV market, Mexico must guarantee that there is sufficient competition in the telecoms sector. According to Reynolds, Mexico shows the highest fixed-line and broadband tariffs of all the OECD member countries combined with very low penetration rates.
Significance: Telmex's current concession does not allow the provision of pay-TV services in Mexico. The operator is waiting for a TV concession approval from the regulator, COFETEL, to offer triple-play services in Mexico. The regulator stipulated on 3 October 2006 a series of requirements on number portability, interconnection, and interoperability which the operator has to meet before being authorised to launch TV services. According to Telmex, although these conditions have been implemented, no progress has been made yet. To accelerate its entry into the triple-play market, Telmex signed an agreement to offer billing and collection of pay-TV services for newly satellite operator Dish México.