A Telmex lesson

, posted: 18-Apr-2006 17:06

Greg Adams who used to edit the Telecommunications Users' Association of New Zealand (TUANZ) publication Topics has written a very good story about Mexico's incumbent telephone monopoly, Telefonos des Mexico or Telmex.

It's a long article, but worth reading, especially for Kiwis because the Mexican experience mirrors New Zealand's. Just like here, Mexicans pay through the nose for phones and broadband and Telmex is accused of hobbling the competition and abusing its market power. A very, very familiar situation.

New Zealand and Mexico are the OECD laggards when it comes to broadband uptake and telecommunications service offerings in general, but in both countries, the respective governments appear too weak and feeble to take action against the incumbents.

In contrast, the British have it good. They were early out of the blocks with telco regulation, and everything points to it being a success. A competitive market with innovative products that are affordably priced for customers was created, with providers and telcos making money out of the growth. The whole experiment has been succesful to the point that the UK watchdog, Ofcom, is now relaxing regulation for BT and removing price controls. Clearly, the British know something New Zealanders and Mexicans don't.

Other related posts:
TDD vs FDD for LTE
Huawei TDD LTE demo aboard the Shanghai MagLev train
Apropos that new Telecom logo

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