IFT scraps Telcel ‘Zero Rate’ interconnection rule

3 Nov 2017

Mexico’s Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) has formally rolled back the ban imposed on America Movil (AM)-backed mobile giant Telcel to charge other carriers for termination services on its network – commonly referred to as the ‘Zero Rate’. The decision follows an injunction awarded by the Second Chamber (Segunda Sala) of the Mexican Supreme Court of Justice in August this year.

Going forward, the IFT has set a price of MXN0.029 (USD0.002) per minute for calls terminating on Telcel’s network, while Telcel will pay an interconnection rate of MXN0.113 to terminate calls on its rivals’ networks. The new interconnection rate will take effect on 1 January 2018, and run until 31 December 2018.

TeleGeography notes that the Zero Rate was imposed on runaway market leader Telcel in 2014, as part of measures to level the playing field for its rivals. As at 30 June 2017 Telcel claimed a 65.6% share of the Mexican mobile market, comfortably ahead of Movistar (22.7%) and AT&T (11.7%).