The importance of promoting healthy competition for the good of users

Encouraging free competition in the telecommunications sector is crucial to preserve an optimal balance between price and quality as well as to ensure the interests of users. However, the participation of entrepreneurs, regulators and users is important and must prevail despite conflicts of interest. Precisely, the Federal Telecommunications Institute (IFT) resolved in its most recent extraordinary plenary session, the file AI / DC-003-2019 related to the Megacable company, based on which it has just declared it with substantial power in the service pay TV.

This is relevant because it is a company that had already shown a notable increase in market share since 2019, as a result of its agreement with Axtel. Said agreement allowed it to immediately acquire more than 50 thousand subscribers, in addition to the entire network of the massive segment of its fiber optic business in cities such as Guadalajara, León, Puebla, Querétaro and Toluca. All this through an operation valued at 1,150 million pesos. This maneuver puts free competition in check.

Based on this agreement, the Investigative Authority of the IFT itself issued a Preliminary Opinion that concluded that Megacable had substantial power in eleven pay TV markets in those same entities.

Due to the fact that the IFT -despite the existence of this preliminary ruling-, continued investigating, it also found that it carried out a series of anti-competitive practices such as forcing its subscribers to contract fixed broadband services at the same time. and pay TV, which contravened the principles of freedom for the user to contract with the company that suits them best.

Given this, the regulatory body determined to formally declare the Megacable company led by Enrique Yamuni with substantial power, in an action that, although it arrives late, will undoubtedly allow the incentive for free competition, in a sector that is already very concentrated.

From now on it is anticipated that, as a result of this declaration, Megacable will have to face and respect the actions imposed by the regulatory body, which seeks to eliminate the anti-competitive practices of the cable company.

For a company like Megacable, which openly intends to become an operator with a nationwide presence, its intention is useless if it does not respect the most essential rules contemplated by the Federal Law on Economic Competition. Thus it is unlikely that you will be able to achieve your goal. It is well known that long-term sustainable growth and leadership is based on solid, planned, fair and responsible growth.

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