President Claudia Sheinbaum went from proposing the total elimination of several regulators, through a constitutional reform, to considering the creation of a new body that would resume functions of the Federal Telecommunications Institute (IFT) and the Federal Economic Competition Commission (Cofece). ).
“We have suggested to the deputies to include in the reform proposal an organization with technical independence,” said the president in her conference on November 6.
This presidential suggestion will pave the way in a sector that will be part of the USMCA discussions starting next year, since article 18, section 17 of the agreement requires that each country “ensure the independence” of its telecommunications regulator.
“Trump’s presidency toughens the review of the USMCA, and one of the most delicate issues is the institutional redesign in Mexico, which includes the Judiciary and autonomous organizations. Now the need arises to guarantee a certain independence in these sectors,” explained Lucía Ojeda, an expert in economic competition.
The new organism and its implications
Since 2014, the IFT has functioned as an independent regulator in telecommunications and broadcasting, with powers in areas such as telephony, pay television and radio spectrum auctions. Cofece has acted as the antitrust entity, monitoring the abuse of market power to benefit competition.
Morena’s proposal would merge the IFT and Cofece into a Federal Competition Commission (Cofeco), a regulator that existed until 2013 under the Ministry of Economy and was eliminated with the constitutional telecommunications reform.
Although the new organization seeks to be independent, doubts persist about its real autonomy. The creation of the Digital Transformation and Telecommunications Agency, which would have the rank of Secretariat, would assume part of the current powers of the IFT, which could compromise technical independence in regulatory decisions.
According to Adolfo Cuevas, former commissioner of the IFT, to avoid conflicts of interest and guarantee compliance with the T-MEC, the new body should operate independently of the Digital Transformation Agency. The regulator’s autonomy has been essential to attract investment, expand networks, increase competition and reduce prices.
“The new entity should function as a deconcentrated body, with technical, budgetary and management autonomy, similar to how Cofetel and Cofeco operated,” suggests Cuevas.
The possible elimination of autonomous organizations could slow down the progress made in the telecommunications sector since the 2013 reform and generate uncertainty in an industry already struggling to implement 5G, in addition to affecting the 1,400 IFT employees.
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