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Legal Update

Mexico Energy Reforms Expected After Passage of Structural Reforms in Telecom and Broadcasting Industries

14 June 2013
Mayer Brown Legal Update

Mexico recently enacted a constitutional reform of its telecommunications and broadcasting industries aimed at increasing competition and investment. The reform is a result of the Pact for Mexico (Pacto por Mexico), by which the current administration and the major political parties pledged to pass structural reforms in such sectors as telecommunications, financial, energy, education and tax.

The telecom reform generally aims to: (i) open 100 percent of telecommunications services to foreign investment; (ii) open up to 49 percent of radio and TV broadcasting services to foreign investment; (iii) increase competition in the sector through the use of antitrust measures; (iv) create a stronger regulatory authority and specialized courts for the telecommunications and broadcasting sectors; (v) establish of a public shared telecommunications network; and (vi) guarantee public access to telecommunications and broadcasting as a constitutional right.

More structural reforms are expected this year. The Mexican government recently announced that it will present an energy reform initiative in August of this year; the initiative is expected to include significant changes to Mexico’s current oil regime—partly aimed at attracting foreign investment—and which may include a reform to the constitution. A fiscal reform initiative is also soon expected. A comprehensive financial reform aimed at boosting credit was proposed by the current administration in May and is expected to soon be addressed by Congress.

Congressional leaders of Mexico’s main political parties have agreed to hold two special sessions during the summer to tackle outstanding initiatives, so they can focus on the energy and fiscal reforms during the second regular session of Congress, which begins in September.

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  • Jose L. Valera
    T +1 713 238 2692
  • Pablo C. Ferrante
    T +1 713 238 2662

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