Pena Nieto Announces Investment of 700 Billion Pesos in Telecommunications Sector

Pena Nieto Announces Investment of 700 Billion Pesos in Telecommunications Sector

The Mexican president, Enrique Pena Nieto, has announced a series of projects in communications and transportation infrastructure for Mexico that will be implemented in the next five years. The Infrastructure Investment Program of Transport and Communications is the Mexico undertake ambitious plan to modernize the country roads, and will generate a cost of four billion pesos in various public works, besides these sectors, include resources to Petroleos Mexicanos (Pemex), the Federal Electricity Commission (CFE) and the National Water Commission (Conagua).

The Federal Executive announced a public investment of 700 billion pesos in the telecommunications sector. The Mexican government has calculated the launching of two satellites, expanding broadband in public spaces, opening two public broadcasters and TV more social. The Mexican president has indicated that the implementation of this reform will serve to increase the country’s competitiveness in areas where there is delay in comparison with other countries.

“It is expected to achieve universal access networks expanding coverage, fostering competition and contributing to the reform instrument of timely and effective manner,” said Enrique Pena Nieto at the launch of Infrastructure Investment Program of Transport and Communications 2013 – 2018.

The Ministry of Communications and Transport (SCT) said the 700 billion pesos telecommunications investment planned in the current administration account for nearly 5.0 percent of gross domestic product (GDP) and double what was invested from the past presidency.

“This increase is derived from the projects mandatan structural reform and investment to be detonated by creating an environment of much greater competition and greater coverage and penetration in the country,” said Undersecretary of Communications SCT Jose Ignacio Peralta Sanchez.

He said that this level of investment is taken up with an initial scenario of 400 billion pesos through the private sector, adding constitutionally mandated projects, as well as those who detonate due to the reform in the field.

In an interview following the announcement of Infrastructure Investment Program of Transport and Communications 2013 – 2018, it is expected to reach 30 percent penetration of mobile broadband in this administration. On the estimation of foreign investment in the sector, there is international interest from the community for further knowledge of telecommunications reform.

Meanwhile, Gerardo Ruiz Esparza, Secretary of Communications and Transport, said that the reforms will boost investment in the sector.

“This reform is a structural change that will have the effect of promoting private investment and multiply in telecommunications,” said Ruiz Esparza.

He added that the reforms envisaged strengthening the fiber optic network of the State, using the 700 MHz band and broadband access from a higher number of public buildings.

“The reform will have a new legal framework and an innovative institutional architecture that will allow us develop a fully competitive environment, a wider coverage of broadband services, more affordable, higher quality services and technology as well as best content,” said Ruiz Esparza.

He stressed out that two satellites placed in orbit should be driven to digital terrestrial television and tendered two new national television networks, and other social functions.

Francisco Gil Diaz, the chief executive of Telefonica Mexico, described the figure announced by the federal government as a “phenomenon”, and said they are interested in participating in projects related to the sector.

Photo Credit: K. Djansezian (AFP)

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