Tag Archives: telecom

Reform already shaking up Mexico telecom industry

TelecommunicationsDespite the customary disputes and recriminations, secondary legislation for Mexico’s telecommunications reform law was approved by Congress and enacted July 14, 2014.   Industry observers will now watch closely as the major players begin to maneuver, but even before the final Congressional vote came down, the new laws already began to trigger moves that could reshape the industry to a degree not seen since fixed-line operator Telmex was privatized in 1990.

First a brief note about Mexico’s legislative process.  It is common for major laws to be passed initially as theoretical guidelines, followed by “secondary laws” or regulations that provide the nuts and bolts of how the new law will work.  For example, an initial energy reform law might say “private entities will now be permitted to generate and sell electricity,” but the secondary legislation will provide the technical specifications setting parameters establishing under what conditions, to whom, via what type of contracts, etc., that this may be done.  Part of the excitement is that the secondary legislation often takes months or even years to draw up and promulgate as law after the initial law is passed.  This is the current situation with Mexico’s highly anticipated energy reform, which was passed in December 2013.  The energy reform secondary legislation has been the subject of political tugs of war in Congress for most of this year and still shows no sign of imminent passage. Continue reading Reform already shaking up Mexico telecom industry

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Recycling: Arzyz, a Mexican producer of non-ferrous alloys, plans investment of US$30 million in green technologies over the next 18 months, the company reported.  Key resources will be focused on technology and infrastructure for metal recycling. (Reforma, September 23, 2013)
  • Automotive: Mexican bus manufacturer Dina invested approximately US$14 million to add production capacity at its plant in the central state of Hidalgo.  The addition will allow the site to increase production of BRT and low-floor buses. (Reforma, September 20, 2013)
  • Renewable energy: Grupo Dragon, majority owned by Mexican telecommunications magnate Ricardo Salinas, is developing a large-scale wind and solar energy generation park in the western state of Jalisco.  The US$133 million project is planned to have a capacity of 50.4 MW. (Reforma, September 17, 2013)
  • Mining: Mexican mine operator Minera Autlán plans investment of US$150 million next year in response to demand driven by the growth in automotive manufacturing in the country.  Resources will be applied to exploration and improved mineral quality, the company reported. (Reforma, September 13, 2013)
  • Metal forming: Canadian metal parts manufacturer ISE Metal began construction on a stamping facility in the northern state of Coahuila.  The US$12 million plant is planned to produce metal parts for the region’s automotive and appliance manufacturing industries. (Vanguardia, September 10, 2013)
  • Electrical: French electrical engineering multinational Schneider Electric inaugurated a new Center for Development and Innovation in the northeastern state of Nuevo León.  The US$65 million center is equipped with areas for laboratory research, virtual collaboration, creativity and innovation, exhibition and energy efficiency research, among others. (El Universal, September 10, 2013) Continue reading Recent and upcoming investment in Mexico

Reform poised to shake up Mexico telecom market

Qué onda
Qué onda

The young administration of President Enrique Peña Nieto –  sworn in December 1, 2012 – has surprised with its zealous effort to push forward major reforms right out of the blocks.  Many of us viewed the return of the PRI with trepidation, considering the party’s long track record of dirty tricks and monkey business through most of the 20th century, but despite our customary distaste for the PRI we support the spirit of Peña’s reforms.  First came a labor reform  proposed by previous President Felipe Calderón and enacted in December.  Then came the education reform, whisked through Congress and signed into law in February against a backdrop of the sensational jailing of nefarious teachers-union despot Elba Esther Gordillo, about which we gloated uncontrollably here.  The big kahuna we are all waiting for is the energy reform, but Peña is working through his battles one by one (so far, mostly with success) and before we get to savor the political theatrics of the energy debate, we will have to resolve the current battle: Telecommunications reform. Continue reading Reform poised to shake up Mexico telecom market