Policy Reform in Networks Infrastructure: The Case of Mexico

This paper addresses the recent Mexico experience in the opening to competition in networks infrastructure mainly in the telecommunications sector. In spite of deregulation and privatization policies in the recent past, there are threats from regulatory failures which create obstacles in the process of maximizing the competition scope. Obstacles from distributive goals, protectionist devices to the dominant networks and also to the new providers from further competitors, and overlapping regulatory agencies, are policy failures to procure competition. The path from State-operation to "managed competition" leads to a deficient competition environment due to the excessive authority oversight from an inefficient regulatory design, which will make costly future, more ambitious, deregulation efforts. The paper focus on interconnection policy between the public telephone network operator and the new long distance carriers, and related provisions in natural gas and railroads. Also, it focus on spectrum policy allocation and the role of the new antitrust authority and the specialized regulatory agencies.