The commercial use of the spectrum frequency bands in Mexico requires a concession that the Federal Telecommunications Institute (IFT) bids and awards for a (renewable) 20-year period.
Generally, the bands are tendered to provide service throughout the territory, but in some cases they may be tendered to provide services by region or locality.
According to the Mexican government, all operators may participate in the bids, except for the preponderant economic agent (AEP), which requires authorization from the IFT.
Telecommunications
Upon granting (and renewing) a concession, operators pay a fee, the amount of which is set by the IFT, subject to the opinion of the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público, SCHP).
In addition, concessionaires pay annual fees determined by Congress as proposed by the SHCP.
According to the IFT, the use of the spectrum in Mexico has a high cost; annual fees represent 80% of the total cost.
Frequency Bands
In 2021, the Mexican Congress increased the annual fees for several frequency bands. It also introduced fees for bands that were previously exempt.
The IFT believes this increase could hinder investments. It may also discourage current operators from participating in bidding processes. Additionally, it could create entry barriers for new players. This might impact end-user fees and speed up the spectrum return process that started in 2019.
Authorities estimate that the spectrum return process will lead to an annual revenue loss of 4.5 billion pesos.
In 2021, the IFT tendered frequency blocks. However, several of these remained vacant. As a result, the Institute proposed modifying the amount of annual fees.
Tariff
During the last four years, the main change related to network interconnection was the elimination of the «zero tariff», an asymmetric regulatory measure imposed by the IFT on América Móvil, according to which it could not charge termination fees to its competitors.
The «zero tariff» was eliminated on January 1, 2018 for mobile service and on January 1, 2019 for fixed service.
Since that date América Móvil can charge termination fees, which are regulated by the IFT.
The rest of the operators freely agree on the conditions to interconnect their networks, including tariffs.