Long-distance trio threaten legal action over CPP introduction

15 Jun 2006

Mexican telcos Axtel, Avantel and Alestra have teamed up to threaten legal action against the Federal Telecommunications Commission (Cofetel) over plans to introduce a calling-party-pays (CPP) system for domestic long-distance (DLD) fixed-to-mobile calls, reports Dow Jones Newswire. The three operators say that the introduction of CPP for local fixed-to-mobile services has resulted in fixed line customers subsidising wireless operators to the tune of USD1 billion annually. They claim it is illegal that cellcos can charge wireline operators more for fixed-to-mobile interconnection than they pay for mobile-to-fixed or mobile-to-mobile calls. Cofetel announced plans to extend CPP to DLD as part of its controversial revamp of Mexico’s telecoms regulations announced in April. Three of Cofetel’s four top officials resigned in protest over the new laws.