Ifetel hits Telmex with LLU order; telco has 60 days to prepare terms

1 Jul 2015

Mexican telecoms regulator Instituto Federal de Telecomunicaciones (Ifetel) announced yesterday (30 June) that Telmex, the country’s Agente Economico Preponderante (AEP), must open up the so-called ‘last mile’ of its fixed line networks to its rivals for the first time. The telco, which is owned by Carlos Slim’s America Movil (AM) group, now has 60 days within which to prepare terms for its competitors.

In announcing the move, Ifetel noted: ‘Effective unbundling of the local network will allow other concessionaires to provide telecommunications services through the infrastructure of the AEP. The conditions for this process help ensure effective access to the local network of the leading company in the telecommunications sector, in order to remove barriers to competition and market entry.’

According to TeleGeography’s GlobalComms Database, a local loop unbundling (LLU) decision has been on the cards since Ifetel took over from the Comision Federal de Telecomunicaciones (Cofetel) in September 2013, with legislation passed in April 2013 compelling the incoming regulator to enact the changes.

TeleGeography notes that Telmex accounted for 63.5% of all PSTN lines in service as at 31 December 2014, while Mexico is one of the few Organisation for Economic Co-operation and Development (OECD) countries not to currently offer LLU.