Priorities for Telecommunications Reform in Mexico

During the past two decades, the performance of the Mexican telecommunications sector has improved substantially. Privatization of the former state-owned monopoly carrier led to a substantial increase in its efficiency, and the introduction of competition into all segments of the industry has led to substantial increases in penetration and utilization. Nevertheless, the performance of the sector is not as good as it could be, primarily because of weak governance institutions. This essay reviews the history of the Mexican reform, the performance of the industry since the reforms began, and the weaknesses in the regulatory and policy framework. The essay concludes with a series of proposals for institutional changes that would improve performance.