Beyond privatization

Abstract

From 1989 to 1994 the government of Mexico carried out a major restructuring of the telecommunications sector. This paper gives a concise overview of the context, issues, and options of telecommunications policy and regulatory reform in Mexico as the market is being opened to widespread new entry and competition. First, it briefly reviews the initial phase of reform from 1989 to 1994, which saw the privatization of its state-owned telephone company, the liberalization of value-added services and private networks, as well as competition in cellular telephony. Then the paper outlines the main elements of policy facing the sector from early 1995, progress in dealing with them so far, and next steps. Attachments 1 to 3 provide supporting data. Attachment 4 examines in more detail the strategic policy options that were available to the government in 1995 for opening the long-distance market to competition. And Attachment 5 discusses issues of cross-ownership between telephone and cable television companies.