IFT imposes substantial power obligations on Megacable in several towns

Mexico City. The Federal Telecommunications Institute (IFT) imposed specific obligations on Megacable for its substantial market power in nine communities where it provides restricted television and audio services. The company must implement a wholesale resale service for these services and take measures to protect end users.

“The obligations seek to guarantee competition and free competition in the identified markets, which is why they are mainly based on strengthening two axes: the reduction of barriers to entry for other competitors and the protection of the end users of said service,” he explained. the regulator in a statement.

The IFT plenary session determined specific obligations for Megacable for being considered an Economic Agent with Substantial Market Power (AEPSM) in San Mateo Atenco and Zinacantepec in the State of Mexico; León in Guanajuato; Guadalajara and Tonalá in Jalisco; Cuautlancingo and San Pedro Cholula in Puebla, as well as in Corregidora and El Marqués in Querétaro.

In these areas, Megacable must establish a wholesale resale service for restricted television and audio services, with the objective of reducing the barriers to entry for new competitors, due to the high costs involved in the deployment of infrastructure.

The company must also limit the mandatory deadlines to which end users would be obliged when contracting its service, avoid additional conditions that prevent them from freely choosing a supplier; maintain the originally agreed prices during the term of the contract; guarantee that, if there are better conditions in the packages offered, by price or service, the user is promptly informed of these conditions and give maximum publicity to the rates.

The company is protected

Later, Megacable assured that the IFT exceeded its powers with this resolution, both with the measures and by designating it as AEPSM, which is why it has filed a claim for protection against the resolution.

“Megacable will initiate the corresponding legal actions against the specific measures issued by the IFT by exceeding its powers, both in the scope of the measures themselves and in the Economic Interest Group determined for compliance, resulting in a violation.” to the Federal Telecommunications and Broadcasting Law (LFTR) in addition to violating the principles of legality and proportionality,” the company emphasized.