Cofetel reduces fixed line interconnection rate

10 Jun 2011

The Comision Federal de Telecomunicaciones (Cofetel), Mexico’s telecoms regulator, has called on dominant fixed line provider Telefonos de Mexico (Telmex) to slash the rate charged for competitors connecting calls to its network. The watchdog has reportedly ordered Telmex to implement a new interconnection rate of MXN0.395 (USD0.32) per minute, down 60% against the previously set rate of USD0.80; the latest regulation represents the first time that Cofetel has set the rate in local currency terms. Further, a reduction has also been implemented regarding the charges levied by Telmex to provide long-distance services to competitors, with the rate also falling to MXN0.0395.

On the back of the development, Bloomberg reports that the incumbent has said that it will not invest in rural regions of the country unless Cofetel rethinks the new measures. Telmex has said it will request that the regulator overturns its recent decision, with the telco’s regulatory and legal affairs director Javier Mondragon claiming that the reductions were legally unfounded.