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Mexico: Supreme Court postpones decision on “Zero Rate” in telecomms until August

By  |  July 17, 2017
Mexico: Supreme Court postpones decision on “Zero Rate” in telecomms until August

The issue of the “Zero Rate” in interconnection services, which has reached the Supreme Court of Justice of the Nation (SCJN) after a series of appeals brought forth by telecommunications giant América Móvil (AMX), will not be resolved by the court until August at the earliest, after the summer holidays.

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    The determination to fix this “zero rate” sought to limit the influence of AMX as a dominant player, having more than 50% of the market and having the muscle to determine prices for the overall market.

    This reasoning lay behind the adoption of asymmetric measures to reduce AMX’s power, and eventually achieve a level playing field with its main competitors such as MoviStar or AT&T.

    The question that AMX has now presented before the Supreme Court is whether Congress had the power to impose that “zero rate.” The court must decide whether this was constitutionally valid.

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