A step forward or backward? An analysis of the recent Mexican telecommunications bill

Digital Transformation and Telecommunications Agency (“ATDT”): This Agency will replace the Federal Telecommunications Institute (IFT) in all its powers, excluding those related to economic competition and declarations of preponderance.

• Digital services as telecom services: The Bill defines digital services as telecom services provided by intermediaries over the Internet. It also establishes that telecom services must be provided through a master license. 
• Blocking of digital platforms for violations of other laws: The ATDT will have the authority to temporarily block digital platforms for non-compliance with any applicable regulations in other areas, upon request by the competent authority. The ATDT will issue guidelines on blocking procedures. 
• Prohibition of advertising and information from foreign governments: Digital platforms with content available in Mexico will be prohibited from selling advertising slots for the dissemination of advertising, propaganda, or any information from foreign governments. Advertising for cultural or tourism purposes will be permitted. Aside from halting the ads and content distribution, the Bill establishes fines ranging from 2% to 5% of the platform's revenue for non-compliance with this prohibition. 
• Broad inclusion of digital platforms: The Bill broadly defines a digital platform as a digital service that allows, among other things, the offering, provision, commercialization, or intermediation of goods, services, applications, products, or content. This includes audio and video applications, video games, products, services, content, as well as financial and e-commerce platforms. 

• User Database: The ATDT will issue guidelines for the registration of mobile service users, into a Database which will be made by telecom licensees. Authorities in safety and justice matters may access this database 
• Device unlocking: All licensees must provide unlocked mobile devices for both prepaid and postpaid services. 
• No exclusivity for distribution channels: Licensees will be prohibited from entering into exclusive contracts for points of sale and distribution, including airtime purchases and balance top-ups. 
• Provision of certain services at no cost: Concessionaires must provide, at no cost to end users, services for accessing, loading, and downloading of sites, applications, and platforms of government agencies, as mandated by the ATDT. They must also provide, at no cost to end users, services for calls to citizen service numbers. 

• Provision of Internet: The Federal Executive may provide Internet services to end users directly or through a public-private partnership. 
• Radio spectrum without payment: The ATDT may assign spectrum bands for commercial use to federal executive agencies without compensation, to provide Internet and meet social and universal coverage objectives. 
• Privileged regulation: The ATDT will define which obligations apply to these State´s licensees, which may differ from those imposed on commercial ones. 

• New requirements for advertising contracts in open and restricted radio and TV: Contracts must transcribe Article 208 and include mechanisms to ensure balance between advertising and content. Contracts between broadcasters and programmers or signal operators must also comply with the requirements of this article. 
• Audience rights: The Bill revives as audience rights: i) provide elements to distinguish between advertising and content of a program, and ii) the clear differentiation between news information and the opinion of the presenter. The ATDT will issue guidelines on ethics codes and audience advocates. 
• Extensions: The deadline for requesting broadcasting license extensions is relaxed; requests must be submitted 6 months before the expiration of the term. 
• Social broadcasters may sell advertising: These broadcasters may generate revenue from broadcasting commercial messages and selling advertising originating from localities, up to 40 seconds per hour of broadcast. 
• Optional transition for public entities: Public entities providing broadcasting services under a commercial license may request to change to a public use license with prior authorization from the ATDT. 

• Obligation to transition to new titles: Only permits, licenses, and titles issued before the current 2014 Federal Telecommunications and Broadcasting Law that grant rights over spectrum use must transition to the new license, authorization, or registration certificate regime within one year of the Law's enactment. Failure to migrate will result in the expiration of the titles. 
• Testing: The ATDT may conduct tests in any available spectrum band for any radiocommunication service in accordance with protocols issued by the ATDT. 
• Contribution discounts: Laws may establish procedures for licensees to access discounts on contributions for the use and exploitation of radio spectrum bands, in exchange for social coverage obligations. 
• Spectrum sharing: The Bill contemplates the possibility of frequency sharing among public authorities. 
• Upcoming spectrum auction: The ATDT will issue a spectrum auction plan for mobile wireless access services within 180 calendar days following the Law's entry into force. 

• Space sustainability: The ATDT will issue technical regulations on orbital resources, space sustainability, and space radiocommunications. 
• Communications with high-altitude platforms and space radiocommunications: These cases will be granted under an authorization scheme. 
• Registration certificates: Rights to emit and receive signals and bands associated with foreign non-commercial satellite systems will be granted under the new registration certificate regime. 
• Satellite capacity reservation: Public and social-use licensees and authorized entities are not required to cover the state's satellite capacity reservation. 
• Additional regulation for satellite services: The Bill establishes regulations on: satellite deorbiting; failures reporting; maximum periods for occupying orbital positions and service resumption; and contingency and replacement plans. 
• ATDT powers: Coordinate with the Ministry of Foreign Affairs in negotiating international agreements and propose the Mexican international position on telecommunications matters. 

• New registration certificates: The Bill introduces new licenses called registration certificates, allowing operations for: amateur radio operators, aeronautical systems, cultural and sports events, etc. 
• New grounds for authorizations: Grounds for requesting an authorization are extended to include: communications with high-altitude platforms; spectrum use for experimentation; space radiocommunications; diplomatic missions and embassy communications; secondary use for specific events or facilities for industrial activities; and to meet the needs of intelligent radiocommunication networks. 
• New authorizations for temporary spectrum and orbital resource use: The ATDT may grant temporary spectrum use for emergencies or pandemics; testing and experimentation; enabling dynamic access and spectrum sharing for coexisting services in the same band; and user migration. 
• Intelligent radiocommunication networks: Licenses are contemplated for these geographically delimited networks to meet specific industry or sector needs. 
• Surrendering licenses and authorizations: Must be approved by the ATDT. 

• Passive infrastructure providers: The ATDT will have authority to regulate independent passive infrastructure providers. It will issue rules regarding the reorganization, removal, or underground deployment of telecommunications infrastructure. 
• Simplification for infrastructure deployment: The ATDT will promote the harmonization and simplification of procedures related to infrastructure deployment. 

• Two competent authorities: Preponderance remains in force. Declarations of preponderance will fall under the authority of the competition regulator. The issuance and amendment of asymmetric regulation will be the responsibility of the ATDT, subject to prior opinion from the competition authority.

• For open and paid radio and television licensees: Prior authorization from the Ministry of the Interior ("SEGOB") will be required to broadcast any content or advertising paid for by foreign governments, individuals, or international organizations. Additionally, they will be prohibited from distributing political, ideological, commercial, or any other form of propaganda from foreign governments or entities, or content intended to influence domestic affairs through national media—except for content related to tourism or cultural promotion. 
• For digital platforms: These platforms will be prohibited from selling advertising slots for the dissemination of advertising, propaganda, or any information from foreign governments. 
• Suspension of transmissions: SEGOB may halt the transmission of such content as a preliminary injunction. 

• Limits on admissibility of interconnection disputes: Licensees must reach agreements in accordance with the minimum technical interconnection conditions and applicable asymmetric interconnection tariffs for the relevant year. Disputes will only be allowed regarding conditions, terms, or tariffs not previously established by the ATDT. 
• Reciprocal compensation agreements: Where the competition authority determines that effective competition exists, peering agreements for traffic must be executed. 
• Interconnection for non-commercial licensees: Public and social-use licensees may request interconnection with commercial networks. 

• New entities subject to penalties: In addition to licensees and authorized entities, the Bill includes penalties applicable to registrants, passive infrastructure providers, and digital platforms. 
• Penalty amounts: Sanctions may range from 0.01% to 10% of the violator’s annual revenue. In cases of repeated violations, fines may be increased up to twice the original amount.