Barriers To Entry in Mexican Telecommunications - Problems and So
Barriers To Entry in Mexican Telecommunications - Problems and So
Volume 27
Issue 1
SYMPOSIUM: Article 1
Fourth Annual Latin American Round Table on
Competition & Trade
2001
Recommended Citation
D. Daniel Sokol, Barriers to Entry in Mexican Telecommunications: Problems and Solutions, 27 Brook. J. Int'l L. (2001).
Available at: https://brooklynworks.brooklaw.edu/bjil/vol27/iss1/1
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SYMPOSIUM
D. DanielSokol*
I. INTRODUCTION
II. PRIVATIZATION
A. Justificationsfor Privatization
(in both statistical and economic terms) after privatization." Id. at 406. See
also Anthony E. Boardman & Aidan R. Vining, Ownership and Performance
in Competitive Environments: A Comparison of the Performance of Private,
Mixed, and State-Owned Enterprises,32 J.L. & ECON. 1 (1989).
6. See SCOTT J. WALLSTEN, AN EMPIRICAL ANALYSIS OF
COMPETITION, PRIVATIZATION, AND REGULATION IN AFRICA AND LATIN AMERICA
1 (World Bank, Policy Research Working Paper No. 2136, 1999), available at
http://www.worldbank.org/htmlldec/PublicationsfWorkpaperswps
2000series/wps2136/wps2136.pdf.
7. Id.
8. WALLSTEN, supra note 6, at 2 (citing BJORN WELLENIUS ET AL.,
TELECOMMUNICATIONS: WORLD BANK EXPERIENCE AND STRATEGY (World Bank,
Discussion Paper 192, 1992).
20011 MEXICAN TELECOMMUNICATIONS 5
11. ADAM SMITH, AN INQUIRY INTO THE WEALTH OF NATIONS 163 (R.
H. Skinner & A. S. Skinner eds., 1976).
12. John Vickers & George Yarrow, Economic Perspective on Priva-
tization, 5 J. ECON. PERSP. 111, 118 (1991).
13. See WALLSTEN, supra note 6, at 4.
14. See id. at 3.
15. Viktor Mayer-Schonberger & Mathias Strasser, A Closer Look at
Telecom Deregulation:The EuropeanAdvantage, 12 HARv. J.L. & TECH. 561,
566 (1999).
16. See Harvey Averch & Leland L. Johnson, Behavior of the Firm
Under Regulatory Constraint,52 AM. ECON. REv. 1052, 1059 (1962).
17. See United States v. Western Elec. Co., 809 F. Supp. 1 (D.D.C.
1995).
18. Id. at 9.
2001] MEXICAN TELECOMMUNICATIONS 7
III. ISSUES
A. Overview
33. Id.
34. Tandon, supranote 22, at 344.
35. WALLSTEN, supra note 6, at 4 (quoting WILLIAM AMBROSE ET AL.,
PRIVATIZING TELECOMMUNICATIONS SYSTEMS: BUSINESS OPPORTUNITIES IN
DEVELOPING COUNTRIES (International Finance Corporation, Discussion Pa-
per No. 10, 1990).
36. Doubling Phone Lines, Bus. MEX., Jan. 1, 2001, available at
2001 WL 7670820.
BROOK. J. INTL L. [Vol. XXVII: 1
B. Interconnection
C. Cross-Subsidization
61. United States v. AT&T, 552 F. Supp. 131, 224 (D.D.C. 1982).
62. Jube Shriver, Jr., William Kennard: On Regulating the Market-
place of the TelecommunicationsBoom, L.A. TIMES, Jan. 18, 1998, at M3.
63. See Cofetel Asks SCT To Sanction Telmex, supra note 45.
64. Cofetel, CFC Shift Telecom Blame, Bus. NEWS AM., July 20,
2001, available at 2001 WL 24789233.
65. Id.
66. Id.
2001] MEXICAN TELECOMMUNICATIONS 17
E. Pricing
F. WTO Action
G. OtherDevelopments
116. Id.
117. Id.
118. See Fight Club, supra note 51. Off net termination is the rate
that Telmex charges to complete a competitor's traffic to remote regions
where competitors lack their own network facilities. Id.
119. Id.
120. See Cofetel Asks SCT To Sanction Telmex, supra note 45.
121. See Marcatel, Telmex to Annul Litigation, Bus. NEWS AM., Aug.
1, 2001, available at 2001 WL 24789885.
122. Id.
123. Id.
124. Id.
125. See AT&T Letter, supra note 92.
BROOK. J. INTL L. [Vol. XXVII: 1
IV. CONCLUSION
A. WTO PanelArbitration
126. CFC Fines Telmex US $3.56MN, Bus. NEWS AM., May 15, 2001.
127. Id.
128. Mexico: WorldCom and Telmex Reach Agreement on Settlement
Rates, LATIN AM. TELECOMM. NEWSL (Office of Telecomm. Tech., Int'l Trade
Admin. U.S. Dep't of Com., Washington, D.C.), June 6, 2001, available at
http://infoserv2.ita.doc.gov/ot/newsarch.nsf/C013b66566a581be8525667
c006f745b/de9089812ab4a28e85256a84006d8b44!OpenDocument (last visited
Oct. 30, 2001).
129. Id.
130. This is the public interest theory of regulation. For a more in
depth explanation, see Paul Joskow & Roger Knoll, Regulation in Theory and
Practice:An Overview, in STUDIES IN PUBLIC REGULATION (Gary Fromm ed.,
1981).
20011 MEXICAN TELECOMMUNICATIONS
B. NAFTA Possibilities
C. Antitrust Remedy
140. Id.
141. Id. § 3.
142. Id. § 5.
143. North American Free Trade Agreement, Dec. 8, 1992, U.S.-Can.-
Mex., 32 I.L.M. 605, 653.
144. Id. ch. 13.
145. Id.
146. Id. art. 1301 (3).
147. Id. art. 1302 (1).
2001] MEXICAN TELECOMMUNICATIONS
1. Division of Telmex
2. Cost Separation