mónica aspe bernal head of the information society office ministry of communications and...
TRANSCRIPT
Mónica Aspe BernalHead of the Information Society OfficeMinistry of Communications and [email protected] @maspeb
First North American Sustainable Economic Development Summit
Energy, Infraestructure, Transportation, Logistics and Border Facilitation
Las Colinas – Irving, Texas
www.reformas.gob.mx
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Reforms in Action
www.reformas.gob.mx
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.
3www.reformas.gob.mx
• 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
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Reforms in Action
www.reformas.gob.mx
Enables domestic and foreign firms to drill in deepwater
fields and shale beds. Existing regulators to be strengthened.
Access to broadband is recognized as a constitutional
right for all Mexicans.
Creates new competition authorities. Increases
sanctions for offenders.
Reforms in Action
Energy Telecommunication and Broadcasting
Anti-monopoly
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Increases tax collection base, cuts tax loopholes.
Fiscal
www.reformas.gob.mx
Reforms in Action
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.
Labor Education Unified Criminal Justice Procedures
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Improves competition among Mexico’s banks. Strengthens
development banks.
Banking
www.reformas.gob.mx
Reforms in Action
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.
New Injunction Law(Habeas corpus)
Political Transparency
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Telecommunications and Broadcasting Reform
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Mexico had been left behind in telecommunications
Source: World Economic Forum, Reporte Information Technology 2013
The development of the telecommunications sector in Mexico has not been enough to improve productivity and welfare of the population
Infrastructure and digital contentNetwork Readiness Subindex
World Economic Forum
Cana
da
USA
Switz
erla
nd
Germ
any
Sing
apur
Repu
blic
of K
orea
Japa
n
Hong
Kon
g
Fran
ce
Barb
ados
Rusia
Pana
ma
Sout
h Af
rica
Chile
Braz
il
Arge
ntina
Mex
ico
Chin
a
Indi
a
0
1
2
3
4
5
6
7
8
6.8 6.8 6.76.5
6.2 6.15.8 5.8 5.8
5.3
4.74.4
4.2 4.2 4.24
3.5 3.5
2.8
Average: 5.1
www.reformas.gob.mx
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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
• Poor level of infrastructure development
• High prices (among the highest consumer prices in the OECD)
• Low take-up of services
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Causes
291 287
272
243 241 241 239
223
159 159150 148
137 137 136 135130 129 129 129 129 127 127
118111
101 10094 93
78 76 7569
4233
In ver sió n públ ic a per c ápit a en t el ec o mun ic ac io n es (Pr o medio an ual en dó l ar es; 2009-2011)
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Low Investment Levels
Source: OECD Communications Outlook 2013
Public Investment in Telecommunications (per capita) 2009-2011
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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.
www.reformas.gob.mx
Source: World Bank, 2012
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Regulation & Antitrust
• Direct foreign investment
• Antitrust regulation
• Must carry/ Must offer
Institutional framework
• Independent regulator
• Specialized courts
Reinforcement of Mexicans’ rights
• Right of Internet Access
• Consumers’ rights• Audiences’ rights
www.reformas.gob.mx
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
Telecommunications Infrastructure
• National Wholesale Backbone
• Open Access Mobile Network
• DTT• Free Internet
Access in Public Places
• Mexsat
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First Positive Outcomes
Elimination of long distance calling fees in mobile and fixed line (January 2015).
Customers will be able to switch phone companies without additional charges and in less than 24 hours. Devices must be unlocked.
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.
Strong sanctions for agents that obstruct competition
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).
National Wholesale Backbone
(including CFE´s fiber optic network)
Wholesale Open Access Mobile Network (700
MHz Band)
México Conectado: Open Internet
access to all public schools, health
centers, libraries, parks
Main initiatives to achieve universal access
Transition to Digital
Television (TDT)
MexSatMexican Satellite
Constellation
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.
www.reformas.gob.mx
Telecommunications Infrastructure Projects
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• Coverage and capillarity: from 25,000 km to 60,000 km
• Access points: from 114 to more than 900
• Redundancy: through other rights of way (highways, railways, oil pipelines)
• Wholesale: open and non discriminatory network. Fosters competition, does not compete
• Investment: USD 758 million
P del Carmen
Nuevo Laredo
León (m)
Saltillo
Aguascalientes
Guadalajara
Silao
Celaya Querétaro
Yautepec
TexcocoTulaPto. Vallarta
Tepic
Mazatlán
Durango
Gómez Palacio
y Torreón
Nogales
Hermosillo
Guaymas
Cd. Obregón ©
Navojoa Los Mochis
Guamuchil
Culiacán ©
Cd. JuárezEnsenada
ReynosaMatamoros
Cd. Victoria
Altamira © - Tampico
Acapulco
Veracruz
Oaxaca
Cd del Carmen
Campeche
Cárdenas
Mérida
Cancún
Coatzacoalcos ©
Zacateca
s
Chihuahua
Orizaba
Xalapa
Poza Rica
Tuxtla Gutiérrez ©
Morelia
Monclova
Chetumal
Delicias
Parral
Minatitlán (No)
Tecate
Camargo
Cd. Cuauhtémoc
P Peñasco
Caborca
Sta. Ana Cananea
NacozariCasas Grandes
Agua Prieta
La Paz
Cd. Constitución
San José del Cabo
Cabo San Lucas
P. Negras ©
Sabinas y
Nva. Rosita
Uruapan
L CárdenasV de Bravo
Salina Cruz
Juchitán
M Romero ©
Villahermosa
Tapachula ©
Manzanillo
Colima Puebla
Moctezuma
TopolobamboLinares
Cd GuzmánOcotlán
Irapuato
Zamora
Escárcega
Monterrey
México
San Juan de los Lagos
Fresnillo
Guanajuato
National Wholesale Backbone
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
• Estimated investment: USD 10 billion
Open Access Mobile Network
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• 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
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.
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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
Mexico Conectado
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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
Thank you
Mónica Aspe BernalHead of the Information Society OfficeMinistry of Communications and [email protected] @maspeb