The IFT, Federal Telecommunications Institute of Mexico, has awarded Axon Partners Group Consulting the special advising services for the biannual assessment of the competiveness measures imposed on the dominant operator in the broadcasting sector.
These asymmetrical measures were imposed to Televisa two years ago as part of the effort made by the Mexican Government to favour free competition and thus to end users. The asymmetrical measures were established to hold some conditions and behaviours back such as entry barriers, essential inputs’ control, exclusivities, discriminatory behaviours, unjustified refusals, predatory pricing, cross-subsidization, price discrimination, margin squeeze, artificial costs increase, discounts or benefits granted selectively, among others. Main measures related to broadcasting sector are those that affects to Infrastructure sharing, Content, Purchasing Clubs, Offer Channels, Information and non-discrimination in advertising and cross-ownership between AEPs.
Axon will advise the Regulatory Policy Unit, during the different stages of the procedure in order to modify, supress or add any measure imposed on the preponderant economic agent in the broadcasting sector.
According to the IFT “Asymmetric regulation will be analysed based on objective criteria which will allow us to know what is the degree of competitiveness in terms of market structure within sectors, economic agents’ behaviour, the evolution and dynamism in each of the services provided by AEPs, the strength their competitors has reached as well as the benefits to end users. This is an opportunity to analyse, and where appropriate, strengthen the asymmetric regulation imposed on AEPs and therefore, accelerate structural changes in both sectors, in a shorter period of time to achieve effective competition in these activities. “.
This project certainly strengthens the presence of Axon in Latin America, where it has local presence in Mexico City, Bogota and Miami and has developed multiple projects on public policy and regulation, as well as in analysis, cost and profitability for both private clients and for public and regulatory agents and regulators. In addition to the IFT, Axon has recently been working in the public sector with the AFTIC (Argentina), CRC (Colombia), SUTEL (Costa Rica), OUR (Jamaica) and ECTEL (Lesser Antilles), among others.