Aguascalientes Opina – December 27, 2024

Sheinbaum Against Monopolies: A Transformation in Mexico’s Telecommunications

By Aníbal Salazar

President Claudia Sheinbaum’s decision to reverse the concessions granted by the Federal Telecommunications Institute (IFT) shortly before its dissolution marks a pivotal moment in Mexico’s political and economic landscape. With firm language and a determined stance, Sheinbaum described this move as a “last-minute ploy” and assured that it would not stand, underscoring her commitment to addressing what she considers administrative irregularities during the transition to a new regulatory model in telecommunications.

This decision comes amid institutional transformation following the decree published in the Official Gazette of the Federation on December 20, formalizing the elimination of the IFT alongside other autonomous bodies. This change reallocates the institute’s functions to the Telecommunications Investment Promotion Agency (Promtel), under the purview of the Ministry of Infrastructure, Communications, and Transportation (SICT).

Sheinbaum defended the measure, arguing that neither the IFT nor the Federal Economic Competition Commission (Cofece) succeeded in fulfilling their primary goal: reducing monopolies and fostering genuine competition in key sectors. According to the president, both entities “failed in their mission,” justifying the transfer of their functions to a more streamlined and efficient decentralized agency.

Unsurprisingly, this decision has elicited mixed reactions. On one side, those who view the IFT as a bastion of regulatory independence fear that its dissolution could concentrate excessive power in the Executive, risking impartiality in the supervision of telecommunications. On the other, the government asserts that this transition is essential to streamline operations, eliminate redundancies, and prioritize collective interests over those of a select few economic players.

Since its creation in 2013 as part of the telecommunications reform led by former President Enrique Peña Nieto, the IFT was intended to manage the radio spectrum and ensure competition in the sector. However, according to Sheinbaum, its performance fell far short. Throughout its existence, the IFT remained an opaque and convoluted institution that, with excessive bureaucracy, continued to favor frequency hoarders instead of promoting equitable and competitive resource use. Many critics have historically questioned this institute, and if its goal was to prevent monopolies, it spectacularly failed by further entrenching them.

The granting of concessions during the institute’s final days has been interpreted by the government as a rushed and questionable act that warrants investigation and, if necessary, reversal. Hopefully, with the establishment of the new mechanism, open and public auctions will be held instead of continuing to shield frequency hoarders.

Sheinbaum’s critique also brings to the forefront the debate over the role of autonomous bodies in Mexican public administration. While their defenders argue that they ensure transparency and accountability, detractors, including the president, often view them as spaces of bureaucratic inefficiency and unfulfilled promises.

Celebrating this decision means recognizing the political courage to confront entrenched interests and challenge structures that have persisted for years without delivering fully on their promises. Nonetheless, it also demands caution and civic oversight to ensure that the new structures adhere to the principles of efficiency, equity, and transparency that they are purportedly founded upon.

Ultimately, this measure is part of a broader effort to redefine the foundations of public administration in Mexico. Time and results will determine whether these actions were justified. For now, Claudia Sheinbaum’s decision stands as a strong statement of her political vision and determination to transform the status quo.

Time will tell… and your opinion.

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*This is a translation of its original version published in Spanish on: Quiero Tv, Ciudad de Aguascalientes Magacín, and A Opinión Magacín.