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Increasing Competition in the Mexican Market

Increasing Competition in the Mexican Market

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Increasing Competition in the Mexican Market

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  1. Increasing Competition in the Mexican Market Diana Daniels, Sr Vice-president Carrier infrastructure & Wholesale Operations

  2. About us… Mexican Concessionary owner of over 6k km Fiber optic, 48 Pops in country 6 international Point of Presence. Offering Residential, Enterprise and Carrier to Carrier services. Major Long distance operator Largest Calling Cards Producer in the US. Major Player in the ethnic market. Proprietary technology used across all the products and services, allowing the provision of superior value to the consumers and a strong foundation to expand into new products and services KARE. Serving more than 60,000 retailers nationwide Largest Hispanic distribution network in the United States servicing the hard-to-reach independent grocers, bodegas, tiendas, carnicerias and other locations where the Hispanic consumers live, work and shop. Aldea’s video services provide broadcasters and media producers with reliable and easy-to-use worldwide transport services for video content, and offer broadcasters turn-key solutions to cover news and global sports events. Top of the line Contact Centre with proprietary technology, World class quality standards and best industry practices

  3. Direct Distribution Our Coverage Serving more than 60,000 retailers nationwide Data/ Transport Services Voice termination Services 48 Pops in Mexico and 155 cities presence A-Z intl capabilities 6k Fiber optic and 7+ International Presence

  4. Competition environment in Mexico • A Year Ago I said… Last April it was released the New Law of Economic Competition • Applying economic agents • Sanctioning Monopoly practices. • Increased fines related to total Sales Some examples: • America Movil fined with US$1BILLION for Monopoly Practices • CFC declared Telmex Dominant • CFC declared Telcel Dominant Supreme Court decided resolution from Cofetel cannot suspended during appeal Cofetel resolved to have new tariffs of interconnection • Telmex rejecting • Major Mobile operators rejecting Still in Process: • New Interconnection Framework • New Rules for Dominant Players

  5. Telecomm Sector in Mexico Telecommunications sector presents big Inefficiencies…

  6. Indicators of Competitiveness Penetration of Pay TV Lack of Competiveness it translate into a direct economic damage to consumers and enterprise sector in the country Production costs in Mexico Telecommunication services it is perceived as the second highest cost of production in the country right after banking interest and finance founding

  7. Mexico´s position according to OECD 30 countries examined, Adjusted rates PPP 5 2 3 6 8 3 2 Source: OECD Communications outlook 2007 and OECD communications outlook 209

  8. Diana Daniels ddaniels@marcatel.net Thank you!