First North American Sustainable Economic
Development Summit
Energy, Infraestructure, Transportation, Logistics and Border
Facilitation
Las Colinas – Irving, Texas
Mónica Aspe Bernal
Head of the Information Society Office
Ministry of Communications and Transportation
monica.aspe@sct.gob.mx
@maspeb
www.reformas.gob.mx
Reforms in Action
www.reformas.gob.mx
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Much has been done in the past 20 months. Mexico
has the lowest tax take in the OECD as a percentage
of GDP: a fiscal reform has started to broaden its
sources of revenues. Measures to shake up the
telecoms and broadcasting industries last month
prompted America Móvil to announce it will divest
assets to avoid antitrust pricing regimes. Teachers will
face more scrutiny, banks more competition…
The Economist, 2014.
www.reformas.gob.mx
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Reforms in Action
•
During President Peña’s administration 11 constitutional reforms have been
promulgated.
•
The objectives of these reforms are:
1. To increase productivity to boost economic growth in the country
2. To reinforce Mexicans’ rights
3. To strengthen Mexico’s democratic regime
•
The legislative phase of the reform process is now completed.
Next comes implementation
www.reformas.gob.mx
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Reforms in Action
Energy
Enables domestic and foreign
firms to drill in deepwater
fields and shale beds. Existing
regulators to be strengthened.
www.reformas.gob.mx
Telecommunication and
Broadcasting
Access to broadband is
recognized as a constitutional
right for all Mexicans.
Anti-monopoly
Creates new competition
authorities. Increases
sanctions for offenders.
Fiscal
Increases tax collection base,
cuts tax loopholes.
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Reforms in Action
Banking
Labor
Education
Unified Criminal Justice
Procedures
Improves competition among
Mexico’s banks. Strengthens
development banks.
Encourages the creation of
jobs through more flexibility.
Establishes better working
conditions for Mexicans.
Introduces evaluation of
teachers in order to improve
standards.
Creates a unified criminal
justice model that ensures
that all Mexicans will be
judged with the same
procedures.
www.reformas.gob.mx
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Reforms in Action
New Injunction Law
(Habeas corpus)
Political
Transparency
Strengthens this instrument
so that Mexicans can rely in
an effective tool to defend
their fundamental rights.
Allows reelection of
members of Congress.
Increases oversight of local
elections.
Strengthens the right of
access to public information
and promotes accountability.
www.reformas.gob.mx
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Telecommunications and Broadcasting Reform
www.reformas.gob.mx
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Mexico had been left behind in
telecommunications
The development of the telecommunications sector in Mexico has not been enough to
improve productivity and welfare of the population
Infrastructure and digital content
Network Readiness Subindex
World Economic Forum
8
7
6.8
6.8
6.7
6.5
6.2
6.1
6
5.8
5.8
5.8
5.3
Average: 5.1
4.7
5
4.4
4.2
4.2
4.2
4
4
3.5
3.5
2.8
3
2
1
www.reformas.gob.mx
India
China
Mexico
Argentina
Brazil
Chile
South Africa
Panama
Rusia
Barbados
France
Hong Kong
Japan
Republic of Korea
Singapur
Germany
Switzerland
USA
Canada
0
Source: World Economic Forum, Reporte Information Technology 2013
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Diagnosis
“The welfare loss attributed to the dysfunctional Mexican telecommunication
sector is estimated at USD 129.2 billion (2005-2009) or 1.8% GDP per annum.”
OECD, Review of Telecommunication Policy and Regulation in Mexico
• Inefficient legal and institutional framework
• High level of concentration
- In telecommunications and broadcasting one
single group concentrates 70% of the market
• Weak competition
Causes
• Poor level of infrastructure development
• High prices (among the highest consumer prices in
the OECD)
• Low take-up of services
www.reformas.gob.mx
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Low Investment Levels
I n v er Public
si ó n pú bl
i c a per c á pi tin
a en
t el ec o mu n i c a c i o n es
Investment
Telecommunications
(Pr o med i o a n u a l en d ó l a r es; 2009-2011)
(per capita)
2009-2011
291 287
272
243 241 241 239
223
159 159
150 148
137 137 136 135
130 129 129 129 129 127 127
118
111
101 100
94
93
78
76
75
69
42
33
Source: OECD Communications Outlook 2013
www.reformas.gob.mx
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Mobile Broadband Penetration
To be compared with OECD countries may be a ambitious, however the result is not
different if we are compared with Latin American countries.
Source: World Bank, 2012
www.reformas.gob.mx
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Constitutional Reform
To reverse this situation, the Federal Government with the support of the main political
forces in Mexico, implemented a radical change in the legal framework of the sector
Reinforcement of
Mexicans’ rights
•
•
•
Right of Internet
Access
Consumers’ rights
Audiences’ rights
Institutional
framework
•
•
Independent
regulator
Specialized
courts
•
•
•
Regulation &
Antitrust
Telecommunications
Infrastructure
Direct foreign
investment
Antitrust
regulation
Must carry/ Must
offer
•
•
•
•
•
www.reformas.gob.mx
National Wholesale
Backbone
Open Access
Mobile Network
DTT
Free Internet
Access in Public
Places
Mexsat
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First Positive Outcomes
The independent regulator (IFT) is now in
full operation.
Specialized telecommunications courts are
now in full operation.
Anti-trust regulation for dominant agents in
telecommunications and broadcasting has
been issued.
Direct foreign investment is now
allowed (100% telecom; 49%
broadcasting).
Free Internet Access in 250,000 parks and
public places (currently up to 45,000).
Users will be able to check their cell phone
balance without charges.
Prepaid cellular phone balances will now
be good for one year and not just two
months.
Customers will be able to switch phone
companies without additional charges and
in less than 24 hours. Devices must be
unlocked.
Strong sanctions for agents that obstruct
competition
Elimination of long distance calling fees in
mobile and fixed line (January 2015).
www.reformas.gob.mx
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Telecommunications
Infrastructure Projects
The Mexican Government is currently implementing the most ambitious
infrastructure projects in the history of telecommunications in the country.
They total an investment USD 14 billion.
Main initiatives to achieve universal access
National
Wholesale
Backbone
(including CFE´s
fiber optic network)
www.reformas.gob.mx
Wholesale Open
Access Mobile
Network (700
MHz Band)
Transition to
Digital
Television (TDT)
México Conectado:
Open Internet
access to all public
schools, health
centers, libraries,
parks
MexSat
Mexican Satellite
Constellation
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National Wholesale Backbone
Tecate
• Coverage and capillarity:
from 25,000 km to 60,000
km
P Peñasco
Agua Prieta
Ensenada
Cd. Juárez
Nogales
Caborca
Sta. Ana
Cananea
Nacozari
Casas Grandes
Hermosillo
Cd. Cuauhtémoc
Moctezuma
P. Negras ©
Chihuahua
Guaymas
Delicias Monclova
Cd. Obregón ©
• Access points: from 114 to
more than 900
Navojoa
Topolobambo
Nuevo Laredo
Camargo
Parral
Los Mochis
Gómez Palacio
y Torreón
Monterrey
Cd. Constitución
Durango
Culiacán ©
Matamoros
Fresnillo
Cd. Victoria
Zacatec
as
Aguascalientes
Mazatlán
Reynosa
Linares
Saltillo
Guamuchil
La
Paz
San José del Cabo
• Redundancy: through other
rights of way (highways,
railways, oil pipelines)
Sabinas y
Nva. Rosita
Altamira © - Tampico
San Juan de los Lagos
León (m)
Cabo San Lucas
Silao
Guadalajara
Tepic
Celaya
Pto. Vallarta Cd Guzmán
Cancún
Irapuato
Guanajuato
P del Carmen
Querétaro
Ocotlán
Colima
Zamora
Tula
México
Uruapan
Morelia
Campeche
Texcoc
Xalap
o
a Puebla
V de Bravo
Escárcega
Yautepec
Oaxaca
Minatitlán
(No)
• Wholesale: open and non
discriminatory network.
Fosters competition, does
not compete
Villahermosa
Cárdena
s
M Romero ©
Juchitán
Acapulco
Chetumal
Veracru
z Coatzacoalcos © Cd del Carmen
Orizaba
Manzanillo
L Cárdenas
Mérida
Poza Rica
Tuxtla Gutiérrez ©
Salina Cruz
Tapachula ©
• Investment: USD 758
million
www.reformas.gob.mx
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Open Access Mobile Network
www.reformas.gob.mx
•
Wholesale network (4G) with national
coverage on the 700 MHz band
•
Public Private Partnership
•
No restrictions for foreign capital
investments
•
Public buildings available for installation
of infrastructure
•
Coverage for over 95% of the
population
•
Reduce entry barriers for the mobile
broadband market
•
Promote competition both in
infrastructure and services
•
Benefit consumers through
internationally competitive prices
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Transition to Digital Television
TDT is an innovative policy for
developing countries, where a
large part of the population doesn´t
have the economic resources to
substitute their analogue TV for a
digital one.
• Guarantee the Constitutional right of access to
information.
• Liberalize the 700 MHz Band by December
2015.
• Aid almost 14 million low-income households
through the distribution of smart-ready TVs.
• Provide households with a better signal &
audio TV, plus a larger diversity of contents.
• Provide the digital devices needed for the
Regulator´s tender for two national TV channels.
• Generate energy consumption savings (twice
the daylight savings time)
• Can be used as smart TVs for Internet access.
• Estimated investment: USD 2 billion
www.reformas.gob.mx
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Mexico Conectado
Mexico Conectado will:
•
Provide free broadband Internet access to all public schools, health centers, libraries, parks and other
public buildings in the country (aproximately 250,000) by 2018.
•
Reduce service costs by aggregating demand.
•
Use any technology based on a cost-efficiency criteria.
•
Install hotspots in unserved and underserved areas.
•
Provide an access platform for the e-government, e-health, e-education and open data initiatives in the
National Digital Strategy (EDN).
•
Estimated Investment: USD 1.5 billion
www.reformas.gob.mx
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National Infrastructure Program
The National Infrastructure Program will position Mexico as a Global Logistic
Platform, taking advantage of its privileged geographical position and its free
trade agreements with 44 countries.
The goal is to transport people, goods, services and data efficiently and safely
through the US-Mexico border.
•
•
•
•
•
Telecommunications reform & infrastructure initiatives
46 new highways
Double our ports capacity by 2018
8 new passenger railroads including 3 high-speed railroads
Mexico City’s new airport
The National Infrastructure Program totals an unprecedented investment of
USD115 billion.
The reforms will fuel Mexico´s economy. A stronger economy will require these
logistics and transport platforms in order to reach its full potential.
www.reformas.gob.mx
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Thank you
Mónica Aspe Bernal
Head of the Information Society Office
Ministry of Communications and Transportation
monica.aspe@sct.gob.mx
@maspeb
www.reformas.gob.mx