Unfinished Business: Telecommunications Reform in Mexico

By Judith Mariscal | Go to book overview

NOTES
1.
As was discussed in Chapter 1, rate of return regulation allows the company to generate a level of revenue sufficient to achieve a predetermined rate of return on its investment (Wilson, 1989).
2.
. Laffont and Tirole (1993), p. 639.
3.
Ramsey pricing follows the theoretical structure developed by the Cambridge philosopher, Frank Ramsey, that determines those second best prices that are Pareto-optimal, subject to the requirement that they yield sufficient revenues to cover the total costs incurred by the supplier of the products. The objective is to set prices in a way that minimizes the need to deviate from marginal costs, while complying with the need to increase the firms’ total revenue. This means raising prices of those items that yield the largest revenue (Baumol and Sidak, 1994).
4.
The top ten holders are: Janus Capital Corporation; Capital International Inc.; Capital Research&Management; Templeton Investment Counsel, Inc.; Brandes Investment Partners, L.P.; Capital Guardian Trust Company; Fidelity Management&Research; Putman Investment Management N.A. Inc.; Schroder Invt. Management N.A. Inc.; and Fleming Asset Management.
5.
For example, long distance carriers are required to build networks that link at least three cities.
6.
OECD, Communications Outlook (1999).
7.
A private agreement was established by the three main telephone companies in January 2001, by which most of the pending issues among them were resolved.
8.
The establishment of COFETEL was not the result of an act of the legislature; it did not have a clear statutory mandate.
9.
In 1998 Javier Lozano replaced him, and in 1999 Jorge Nicolín replaced Lozano.
10.
The president chooses from a list provided by SCT.
11.
Then owned wholly by Alejo Peralta.
12.
At the time COFETEL had not yet been created.
13.
One of the major competitors, Avantel, filed an injunction (amparo) against this resolution and was granted a suspension of payments until the merits of the case are resolved.
14.
The Mexican rate considered in this comparison excludes the 58 percent surcharge which was eliminated by COFETEL in 1998.
15.
The interconnection rates were finally set at competitive standards in November 2000, after the USTR filed a complaint against Mexico for unfair trade practices at the World Trade Organization (WTO).
16.
Universal access (or universal service) is a standard pursued in most telecommunication policies across countries that requires telephone companies to provide affordable access to telephone services to the population.
17.
See Noam (1994).
18.
Teléfonos de México Reporte Anual (1993).
19.
Operating income is the excess of revenues over long-run operating costs (including capital consumption).

-92-

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Unfinished Business: Telecommunications Reform in Mexico
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Contents vii
  • Preface ix
  • Introduction xiii
  • 1 - Technological Change in the Telecommunications Industry 1
  • 2 - The Policy Process 25
  • 3 - Policy Outcomes 67
  • Notes 92
  • 4 - Telecommunications Reform in Other Countries 93
  • 5 - Conclusions 129
  • Bibliography 143
  • Index 155
  • About the Author 159
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