The proposed elimination of the Instituto Federal de Telecomunicaciones (IFT) has raised significant concerns about the future of regulatory oversight in Mexico.
With uncertainty surrounding the structure of new regulators, the restructuring is anticipated to place competition regulation under the Ministry of Communications, Infrastructure, and Transport.
This restructuring could resemble pre-2013 structures, potentially impacting the effectiveness and independence of regulatory oversight.
According to Fernando Borjón, analyst at Access Partnership, the expansion of the government entity CFE Telecomunicaciones e Internet para Todos—which may absorb Promtel’s stake in the Red Compartida and exert increased influence over Altán Redes—could lead to a government-controlled entity dominating the internet service market.
This raises concerns about competitive neutrality and the potential stifling of private sector innovation and investment.
The proposed regulatory and competition framework changes may also conflict with Chapter 18 of the United States-Mexico-Canada Agreement (USMCA), particularly regarding competition policy and fair market access.
Such conflicts could have broader implications for Mexico's trade relationships and economic integration with its North American partners.
Independent Regulator
The Organization for Economic Cooperation and Development (OECD) has emphasized the importance of maintaining a strong, independent regulator in Mexico.
Alexia González, head of the OECD's Infrastructure and Services Unit, highlighted that the IFT was created to challenge a highly concentrated status quo and move towards a more competitive future.
González stated, “Mexico needs to maintain a strong and independent regulator that continues to promote competition, investment, and innovation, in line with OECD best practices, which recommend that sectoral bodies be independent to preserve public trust and ensure competitive neutrality between public and private enterprises.”
Enrique Yamuni, president of the National Chamber of the Electronics, Telecommunications, and Information Technology Industry (Canieti), acknowledged that while the IFT has pending tasks, its independence is crucial for continued progress.
"Everything can be improved, but improvement does not mean elimination. It means transforming, evolving, and continuing on the path we have taken so far," said Yamuni.
He noted that América Móvil’s market share in fixed broadband decreased by 35 percentage points and in mobile broadband by 16 points, emphasizing the positive impact of regulatory actions.
Javier Juárez Mojica, president of the IFT, stated that competition has been fostered, service quality has improved, and national connectivity has been promoted.
"Thanks to our institutional design, decisions have been made strictly based on evidence and technical criteria following international best practices," Juárez Mojica affirmed.
With over 93 million internet users, representing more than 78% of the population aged six and above, Mexico has seen significant connectivity growth.
The latest INEGI survey indicates that this number has risen to over 97 million, accounting for more than 81% of the population.
Juárez Mojica highlighted that telecommunications prices have decreased by 32%, a notable reduction given that inflation was 58% during the same period.
