The Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has asked America Movil (AM)-backed fixed line operators Telefonos de Mexico (Telmex) and Telefonos del Noreste (Telnor) to modify their respective ‘functional separation’ proposals, as initially requested in February this year.
Alongside a number of modifications to the existing asymmetrical regulations, the IFT ordered a separation of Telmex’s fixed line retail and wholesale divisions in an effort to stimulate competition. As such, AM will be forced to incorporate a legal entity independent from Telmex/Telnor which will exclusively provide wholesale services related to local loop access and the use of its passive infrastructure. The telcos now have 30 days (commencing 4 October) to re-submit separation plans.
Note: Telnor, Telmex’s smaller sister company, operates in Baja California and the neighbouring state of Sonora.