Red Compartida in Mexico: The Role of Government
CPR LATAM Conference, Mexico, June 22-23rd, 2016 in conjunction with CLT2016, June 20-23rd, 2016
13 Pages Posted: 2 Nov 2016 Last revised: 3 Nov 2016
Date Written: June 22, 2016
The backwardness faced by Mexico in telecommunications and the economy in recent decades led the government to implement reform requiring the installation of a shared wholesale network (Red Compartida). This network will use 90 MHz of the 700 MHz band, will only sell to operators, will cover at least 85% of the population by 2021 and may not be operated by existing concessionaires in Mexico.
This paper analyzes the origins of this public policy and the challenges it faces, in terms of both deployment (offer) and demand, as well as the effects on market structure and the promotion of Information and Communications Technology (ICT). The conclusion is that the Red Compartida, within a framework of high mobile broadband needs may, given its coverage, capacity and prices, enable new ICT business models and serve as a complement for current mobile and fixed operators.
Keywords: Red Compartida, MVNOs, telecommunications reform, 700 MHz band, ICT ecosystem, spectrum, broadband
JEL Classification: L86
Suggested Citation: Suggested Citation