Mexican telecom giant América Móvil stands to lose its stronghold on the telecommunications market after the Mexican Congress approved legislative reforms on Wednesday intended to break down telecommunications monopolies in the country.
President Enrique Peña Nieto proposed the reforms on March 24 as part of his campaign to create more competition in the Mexican telecommunications market and improve Mexico’s economy. The new reforms require businesses to hold less than 50 percent of the market share, will place restrictions on pricing, and require that telecommunications infrastructure be shared—but will also allow such companies to determine their own breakdown of the market share.
Owned by billionaire Carlos Slim, América Móvil currently dominates the market with 70 percent of Mexico’s cellphone subscribers and 80 percent of its landlines—and with over 272 million wireless subscribers, it is the largest operator in the Americas. Arturo Elias, a spokesperson for Carlos Slim, said yesterday that to meet the requirements of the new reforms, América Móvil would have to sell between 15 and 17 percent of its overall phone market.
Spain’s Telefonica, which is currently second in the Mexican telecommunications market, may try to expand its current market due to the new reforms—and companies with a smaller portion of the Mexican market, such as AT&T, Virgin Mobile and Grupo Televisa, could also benefit from the legislation. Mexico’s transportation and communications ministry said in a statement that “this decision could transform competition in the telecommunications sector with improved quality and better prices for services to end users.”
The World Cup is a lot more than just soccer. It is a global celebration and in many regards, a showcase of cultures, not just from the host country but from all nations participating in it.
While Mexico did not become the World Cup soccer champion in Brazil, international media sources did call it the champion of social media, as one of the nations with some of the most social media chatter and memes during the tournament. The flourishing of social media has made Mexico renown in all corners of the globe, in ways that traditional media has not.
Unfortunately, not all of our portrayals are positive. During Brazil 2014, some Mexican fans chose to display their “cultural humor” in ways that could be considered hateful or homophobic—including taunting goalkeepers by calling them “puto,” a derogatory term used frequently at soccer matches in Mexico. The Fédération Internationale de Football Association (FIFA) even opened up an investigation to evaluate if the Mexican soccer federation should be fined for promoting discrimination through the use of this taunt (in the end, FIFA decided against it, determining that the federation could not be held liable for spectators’ conduct).
More relevant than the debate over FIFA’s decision about the chant is the fans’ reaction to it. Instead of questioning the use of the word and our projection of Mexican culture to the world, many Mexican soccer fans decided to bask in the glory of their ability to insult others.
Mexico’s Coordinadora Nacional de Trabajadores de la Educación (National Coordinator of Education Workers–CNTE), the powerful teacher’s union, took to the streets of Mexico City yesterday to protest President Enrique Peña Nieto’s educational reform, including a 3.5 percent increase in teachers’ wages. The leaders of the union sent a message to the president calling the increase “a joke.”
The education reform seeks to professionalize Mexico’s teachers, some of who have been accused of being "maestros aviadores" (aviator teachers) because they regularly fail to attend class. The protests in the capital come a month after local governments in Oaxaca, Chiapas, Michoacán, Sonora, Zacatecas and Baja California were taken to court by the Peña Nieto’s administration for not adhering to the rules of the reforms, and the laws of the “Servicio Profesional Docente” (Professional Teaching Service).
The educational reform project began with an agreement among Mexico’s three main political parties, known as the Pacto por México (Pact for Mexico). The reforms have faced stiff opposition, especially in southern Mexico where protests in Guerrero have turned violent and over a million students in Oaxaca missed nearly two months of class in September and October of last year. After taking to the streets on May 15, teachers threatened to call for more powerful protests and mobilizations against the Peña Nieto government.
Every year around February, Carlos Slim Helú’s name is tossed around in the offices of Forbes magazine. Numbers are crunched, and Forbes’ editors determine if they will publish the Mexican businessman’s name with a 1 or a 2 beside it in their famous “World’s Richest People” list.
In a country ranked 88th in the world in GDP per capita in 2013, with 52.3 percent of its population living below the poverty line in 2012, one has to wonder how it is that Slim is able to accrue so much wealth.
Forbes calculates Slim and his family’s net worth at $72 billion dollars. Other publications calculate his worth at around $75 billion, so let’s settle for $73, give or take a few billion. Putting things into perspective, based on last year’s GDP per capita estimates, Slim’s $73 billion net worth is equivalent to more than the wealth of 4.6 million average Mexicans put together.
There are a number of explanations for how Slim got this rich. Some appeal to the romantic story of an entrepreneurial boy who learned to invest from his father at the age of 12. Others, more critical of Slim, point towards the moment that Slim bought Teléfonos de México (Telmex) in 1990 during the privatizations of former President Carlos Salinas Gortari. In reality, Slim was a wealthy man well before 1990, but I’m sure that gaining control of the only phone company in the country at the time helped grow his assets, which include ownership and/or shareholder participation in over 200 companies in Mexico.
Mexican President Enrique Peña Nieto proposed new rules yesterday aimed at increasing oil production and boosting the economy.
The proposed legislation includes the creation of eight new laws and the modification of 13 existing laws. Mexican Secretary of Tax, Luis Videgaray, and Secretary of Energy, Pedro Joaquín Coldwell, have said that, with the exception of public gasoline sale, the new rules would open the sale of energy resources to foreign and private firms while keeping them under state control. Videgaray maintained that the laws will reduce Mexico’s high fiscal dependence on oil revenues.
If the rules are approved by Congress, it would end a 75-year monopoly by the state-run oil company Pemex, which was created by the Partido Revolucionario Institucional (Institutional Revolutionary Party—PRI) under President Lázaro Cárdenas in 1938. While giving new businesses the opportunity to invest in Mexican oil, the laws would also lower taxes on Pemex from 79 percent to less than 65 percent. Pemex would also be guaranteed at least a 20 percent stake of business in oil deposits in defined territories.
Political opposition parties, the Partido Acción Nacional (National Action Party—PAN) and the Partido de la Revolución Democrática (Party of the Democratic Revolution—PDR) have both pushed back against the reform. The PAN has made its support of the new rules conditional on the passage of electoral reform that would weaken the PRI’s influence. The PRD is hoping to overturn the proposed reform altogether.
On March 24, Enrique Peña Nieto presented the Mexican Senate with a bill for a new telecommunications law that complements the constitutional reforms he approved in 2013. The legislation proposes, among other things, to promote competition in the sector, improve telecom services, and regulate the radioelectric spectrum through the new telecommunications regulator, the Instituto Federal de Telecomunicaciones (Federal Telecommunications Institute—IFETEL). The bill is now being revised, and is expected to be approved in the coming days.
However, the proposal is already raising eyebrows and creating waves in the digital sphere, where it’s being labeled as a form of government censorship.
According to Article 2 of the bill, the legislation is intended to “protect the nation’s security and sovereignty,” and the most controversial articles in the initiative are preceded by mentions of criminal prosecution and promoting the public interest. There is room for discussion on the potential effectiveness of this objective, but much like the current debate in the U.S. over the NSA’s capabilities vs. individual freedoms and privacy, citizens in Mexico are worried about ceding too much power to the federal government. The far-reaching legislation has created a number of trending topics on Twitter, under hashtags like #EPNvsInternet #ContraElSilencioMx and #NoMasPoderAlPoder (roughly translated to #PeñaNietoV.Internet, #AgainstSilenceMx and #NoMorePowerToTheOnesInPower).
One of the most popular bloggers in Mexico, “Sopitas,” criticized Peña Nieto’s proposal by stating that social media has been the only widespread communication channel where the public can express its dissent with the current government. On April 21, #EPNvsInternet became a worldwide trending topic on Twitter and, as these words are being written, “netizens” in Mexico City are organizing a massive demonstration at the Ángel de la Independencia monument in downtown Mexico City, which also hosted many of #YoSoy132’s protests against Peña Nieto’s alleged alliance with Televisa in the 2012 presidential elections. When the neutrality of the largest news media conglomerate in the country is in question, citizen journalism becomes crucial.
Attempts to control speech on the Internet are not new. One need only consult Global Voices’ Advocacy project to see that, when given the power to do so, governments unequivocally use Internet restriction as a means to block and control dissent.
But how would the president’s telecom law proposal trample on free speech? What are netizens protesting against? Here are some highlights:
Supporters of the proposed telecom law might argue that these new attributions would allow government to better combat organized crime, but the other side of the story shows that if the legislation is approved as-is, any government would be legally awarded the power to read emails exchanged between its detractors, know their location and cut off their communications.
Would the government consider a mass protest on Avenida Reforma to be an event against public security, and thus block cell phone communications in the area? Those opposing the new law seem to think this is a possibility.
This developing story has caused outrage on Twitter, Facebook and other social networks. Will this outrage help write a different conclusion—one in which the proposed telecom bill is overturned? Or will Mexico join the ranks of censorship-friendly countries such as Cambodia, Turkey and Venezuela?
This week, two mayors in the state of Michoacán were arrested by the Procuraduría General de Justicia del Estado de Michoacán (Attorney General of the State of Michoacán—PGJE ). Uriel Chávez, the mayor of Apatzingan and a member of the Partido Revolucionario Institucional (Institutional Revolutionary Party—PRI), and Noé Aburto Inclán, mayor of Tacámbaro and a member of the Partido Acción Nacional (National Action Party—PAN), were detained on suspicion of extortion and embezzlement, respectively.
As if Mexicans needed more reasons to distrust their elected officials, two other cases this month, coming from the PRI, show just how low some publicly elected officials are willing to stoop in a country plagued by impunity.
Cuauhtémoc Gutiérrez was the president of the PRI in Mexico City until April 2, 2014. Gutiérrez is the son of the late Rafael Gutiérrez—a former council member for the PRI in Mexico City known as the “The King of Trash” because he led the capital city’s trash collectors’ union for more than 20 years. Rafael Gutiérrez’s wife, Martha García, confessed to having the “The King of Trash” murdered in 1987. She justified the murder by saying she had endured 11 years of physical abuse from her husband, and also said that Gutiérrez had sexually abused his underage niece.
Apparently Cuauhtémoc has followed in his father’s footsteps. A recent investigation by Noticias MVS radio journalist Carmen Aristegui reported that Gutiérrez’ office ran ads to hire 18 to 32-year-old women as hostesses that were also expected to provide Gutiérrez sexual favors in exchange for higher pay. In recorded testimonies, four victims mention performing sexual favors for Gutiérrez inside Mexico City’s PRI offices, as well as accompanying him on business trips and to nighttime events. The Procuraduría de Justicia (Justice Department) in Mexico City is now investigating the case.
The mayors of the Mexican cities of Apatzingan and Tacámbaro, in the state of Michoacán, were arrested last night by the Procuraduría General de Justicia del Estado de Michoacán (Attorney General of the State of Michoacán—PGJE ) on suspicion of extortion and embezzlement, respectively.
Uriel Chávez, the mayor of Apatzingan and a member of the Partido Revolucionario Institucional (Institutional Revolutionary Party—PRI), is accused of pressuring city council members to pay $1,500 out of their salaries to the Knights Templar cartel, which has a strong presence in the city. The prosecutors said they received a number of complaints by council members who allege that in January of 2012, Chávez took them to a rural area where armed men demanded money for weapons. Chávez denies the claims.
Meanwhile, Noé Aburto Inclán, mayor of Tacámbaro and a member of the Partido Acción Nacional (National Action Party—PAN), was also arrested last night for reportedly embezzling money from city coffers.
Michoacán has become a stronghold for the Knights Templar cartel. Last year, a number of civilians began organizing themselves into fuerzas autodefensas (self-defense forces) to combat the cartel’s infleucne. The Mexican government initially tried to integrate the groups into formalized units called the Rural Defense Corps under control of the military. But few of the self-defense forces obliged, causing the interior minister to set a May 10 deadline for autofedensas to register their guns and join the Corps or face arrest.
In 2013, Morris, the Candigato (Cat Candidate) gained notoriety in Mexico’s social networks and news outlets after launching a successful online campaign via Facebook and Twitter, in a mock run for the position of Mayor of the city of Xalapa, Veracruz. The Candigato’s comedic slogans, such as “Tired of voting for rats? Vote for a Cat,” became popular among the online community and almost instantly his account on Facebook gained close to 250,000 followers. Morris, the Candigato, is a perfect reflection of Mexico’s idiosyncrasy: many Mexicans will laugh at their tragedies.
The online campaign lasted for two months and only cost as much as the registry for the web domain. Yet after the votes were counted, CNN reported that Morris had bested at least 3 of the 8 actual candidates running for office. The creators the Candigato were recognized by the Victory Awards, winning the “Best Political Innovator” during the 2014 Marketing Político en la Red (Political Online Marketing) Conference—an unusual selection for an award usually won by political consultants.
Unfortunately, while the Candigato’s online success may be amusing, it is also points to Mexican society’s apathy and callousness for its political leaders. Now Morris is back with a different mission.
Manuel Mondragón y Kalb, Mexico’s head of the National Security Commission, resigned on Monday. He had served in the position since 2013 and was in charge of crime control and prevention.
Although the motive for Mondragón y Kalb’s resignation is unclear, sources speculate that it was in part because Mondragón was far behind schedule on heading an anti-drug National Gendarmerie paramilitary force that was to be organized by September of 2013 with 10,000 officers. As it stands, the group will now will have an estimated 5,000 officers in its ranks. President Enrique Peña Nieto appointed Mondragón y Kalb as part of his promise to crack down on crime and drug related violence. However, while homicide and murder rates have decreased, other forms of violence have spiked. Between January and November of 2013 there were 32 percent more kidnappings in Mexico than during the previous year.
Interior Minister Miguel Angel Osorio Chong is expected to make an official announcement of Mondragón’s resignation today. No replacement has been named yet. A trained plastic surgeon, Mondragón y Kalb held several federal positions prior to becoming the national security commissioner, including Police Chief of Mexico City.
June 1: This AQ-Efecto Naím segment looks at sustainable cities in the hemisphere.