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Going or not going? The IFT will not be an obstacle in the plans of CFE Telecomunicaciones

The Federal Institute of Telecommunications (IFT) will not be an obstacle in the plans of CFE Telecomunicaciones and Internet para Todos. The telecommunications regulator told Expansión via transparency that it does not require verifying the areas where the state company will offer its telephone and internet services, despite the fact that the concession granted in 2019 does establish certain limitations.

CFE Telecom is prohibited from marketing its telecommunications plans in markets that are already served by other operators, however, since August the CFE subsidiary company has been promoting its connectivity services throughout the country, including entities such as Mexico City and the State of Mexico, where there is already a high concentration of operators.

Although specialists consulted warn that this would pose a risk to competition, the IFT told Expansión via transparency that “effective compliance with the conditions established in the concession titles or any other applicable regulations is the responsibility of the concessionaires.”

CFE Telecom offers mobile telephony services in the country with 4.5G technology, with prepaid plans that start at 30 pesos, for 4 GB of internet and 250 minutes of calls; up to 300 pesos, for 40 GB of internet and 1500 minutes. It also has postpaid packages ranging from 400 to 2,100 pesos.

The IFT authorized the state company to open 47 branches to sell its chips or SIM cards, most of which are located in Oaxaca, assuming that in some areas of that market there is no offer of services by private operators. However, the telecommunications regulator said via transparency that “there is no document where such a review (of areas without connectivity) has been carried out, since it is not required as a prerequisite to proceed with the registration in the Public Registry of Concessions” .

Although Mexico City and the State of Mexico do not have points of sale, company employees confirmed by telephone to Expansión that users in those locations would be able to access CFE Telecom’s telecommunications services.

“Of course, this can be done, someone can buy you the chip and without any problem we can help you here to activate the CFE Telecom service. Or you can also do it through the official page,” the operator assured.

When questioning the Institute about how it will guarantee that the state-owned Virtual Mobile Operator (MVNO) will not violate its concession, the regulator responded that CFE Telecomunicaciones will be solely responsible for not violating its title.

“CFE Telecomunicaciones e Internet para Todos, is responsible for not violating the conditions of its concession, such as providing services in towns where there are no other providers, without prejudice to the powers of supervision and verification that may be exercised at any time by the Institute, in order to monitor compliance with the conditions established in the concession title in question”, said the IFT via transparency.

Telecommunications expert lawyers point out that “it is worrying” that the Institute does not take an active attitude to verify that there is not another player in the areas where the state company will provide its services , since with this it fails to comply with one of the main areas that is supervision and surveillance. In addition, they assure that it is the obligation of the telecommunications regulatory body to monitor that the operators and in this case CFE comply with all the conditions stipulated in their concession to avoid distortions in competition.

“Clearly the IFT is the one who must supervise compliance with the CFE Telecom concession, including these prohibitions on providing services where there is already a provider, because it is evident that CFE is not going to self-assess. (Monitoring) is the Institute’s reason for being,” says Michel Hernández Tafoya, director of Observatel and a lawyer.

For the experts, now that the state OMV has already begun to promote its connectivity services in areas where it is clearly prohibited from doing so, it is necessary for the IFT verification and suspension area to initiate an action to determine if the state company is violating its title. concession.

“Many times the Institute itself has initiated procedures against other concessionaires only with the suspicion that there is a violation, the question is: why would it not do it with CFE Telecom”, questions Jorge Moreno Loza, telecommunications lawyer and head of the office of Expansion. “Then what is the IFT’s area of competence doing? Why hasn’t it initiated any procedure? Because (the fact that the state MVNO offers services in places where there is already an offer) could clearly distort competition,” states the specialist.

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