Interconnection agreements signed; Telmex cuts some prices, freezes others

13 Jan 2011

Mexican sister companies, fixed telco Telefonos de Mexico (Telmex) and cellco Radiomovil Dipsa (Telcel), have signed agreements with Spanish group Telefonica’s mobile and fixed-wireless unit in the country, Telefonica Moviles Mexico (Movistar), to reduce interconnection rates between their respective fixed and mobile networks. The two America Movil subsidiaries have agreed with Telefonica to cut interconnect fees between domestic fixed and cellular networks to MXN0.95 (USD0.07) as from January 2011, MXN0.86 in 2012, MXN0.78 in 2013 and MXN0.69 in 2014.

Resulting from the agreement, Telmex has reduced its fixed-to-mobile voice call charge by 10.6% to MXN1.35 per minute, effective 1 January. Furthermore, the telco has pledged not to pass on the cost of a 1% rise in VAT and IEPS (special tax on production and services) to its customers, and will freeze most prices across its range, whilst dropping the tariff for its ‘Infinitum’ internet access packages.