The Sweet Spot of the Mexican Telecom Reform (Part 2/3)

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I hope you have read the First Part of this Post. If not, feel free to catch up here. This is part 2 of 3-part post on the recently published Mexican Telecom Reform. Follow me to explore the great opportunities to come.

It´s STEM People time.

The debate of immigration across the US is being fueled by the lack of STEM professionals (science, technology, engineering and math). The scarcity of STEM people in Silicon Valley has forced the tech community to push US Congress for a flexible immigration bill that can attract foreign tech startups and talent, as Toronto and other places are doing.

Mexico has a base of 400,000 software engineers and 65,000 graduating every year that could fill-in the needs for tech people in the Mexican telecom industry. With the right infrastructure, a successful outsourcing service can be set up to serve the US and the world. Even more, such services are eligible for IMMEX export incentives in Mexico.

Mexico also has the advantage of having a flexible immigration policy for qualified technicians/professionals and businessmen, as well as great conditions for startups. The opportunity and the challenge will be for schools and human resources. They need to create better models for attracting and keeping up the best. Companies could expand work-from-home policies, a very limited spread in Mexico.

In my recent post “Mexican Telecom Reform: The Rise of the STEM Lawyers”, I discussed that this Reform will be taken at court very often. Incumbents will play defending tower, and entrants will try to siege the market. STEM lawyers will play an essential role on arguing complicated concepts like dominant player, relevant and related markets, essential facilities and substitutes with the variables of regulation for each service. These are concepts taken from economic theories inserted into the Law, but lawyers will be in charge to enforce them.

Now, you may add that telecom courts will have a learning curve, and the scarcity of STEM lawyers in Mexico will not make an even battlefield for the parties. Also, technology is ever changing and converging. All these changes are the cue for the legal industry worldwide to develop business in a non-liberalised legal market.

Broadband Internet Access.

The Reform granted all Mexican citizens and residents the constitutional right to broadband and Internet. This acknowledged right has effects on the business environment.

First, no authority, of any level, can unreasonable obstruct telecom infrastructure.

Second, any Project pitched to the Government under the Public Private Associations with the label “broadband” increases its chances to get public funding.

Third, the term “essential facilities” will be key for telecom and IT businesses, as convergence makes it difficult to unbundle essential from accessory facilities. Again, court will decide.

Fourth, long-term growing and sustainability will require open and collaborative models, as restrictions could be declared unconstitutional.

Fifth, universal broadband service is still in discussion as to the speed, if it will apply for corporations or how to enforce it and up to what extend.

Sixth, Supreme Court has just started its electronic signature and file program. The intention of the Court is that all federal proceedings would be electronic. A major overhaul in firms and courts will be needed to migrate from paper to electronic, as major part of commercial proceedings are in written.

Seventh, MVS won a constitutional writ to recover part of the 2.5 GHz band. There is a possibility to keep enough bandwidth to implement his broadband-for-everyone Plan with Intel and Clearwire.

Bonus life, Gartner calculated that during 2011, there was a spending of $74 US Billions in video games. Mexico spent $1.2 US Billion in video games that year, with the growing annual tendency of 25%. Microsoft has already announced that “Xbox-One” (due by December 2013), will require always-online. Adding up the trend of free-to-play, VOD, paid content/subscriptions, mobile and social gaming, this represents a heavy amount of GBs that will be demanded in the mid-term. Even PROMEXICO (Mexican Promotion Agency) has placed a bet on video game production in Mexico.

Third and last instalment is coming in a couple of days …