Movistar and AT&T, the most affected without zero tariff

Due to their reliance on voice services, these companies will be the most affected, according to UBS
Carla Martínez
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AT&T México and Telefónica México will be the companies most affected by the National Supreme Court of Justice (SCJN) resolution which granted an amparo to Telcel on the interconnection tariffs, according to an analysis of UBS.

“They will be the most affected in the mobile branch, given their heavy reliance on voice services,” UBS said in a statement.

The least affected companies will be Televisa and Megacable, because they also offer landline services.

Last Wednesday, the SCJN decided that the Federal Institute of Telecommunications (IFT) would be in charge of fixing the interconnection tariffs that the rest of the companies have to pay to Telcel, based on a cost model and considering the tariff needs to be asymmetrical.

The Court also concluded that AT&T Mexico and Telefónica México, as well as the rest of the mobile and landline phone companies, should not retroactively pay any compensation to Telcel because of the interconnection tariff.

With the Court ruling, the interconnection tariff zero – in operation since 2014 – will be eliminated in 2018.

“We believe the regulator can use a cost-orientation approach to establish new rates, which would allow for asymmetry, potentially much lower, between the rates of América Móvil and its landline and mobile competitors,” explained UBS.

Ramiro Tovar, telecommunications analyst, considers that now they have lost this subsidy, these two companies will have to compensate, somehow, the additional cost they didn't have to pay to Telcel before.


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