The preceding chapter explained the Mexican telecommunications policy choice as the result of a strategic interaction between key players. This chapter examines the outcomes of this policy decision. It will first set the issue of the Mexican telecommunications reform through a historical narrative of the development of the national telephone company, Telmex. A general overview of the different regulatory periods this sector has experienced will show that, although there were different ownership and regulatory structures throughout the history of the telecommunications sector in Mexico, the common factor was a lack of incentives (regulatory or competitive) to thoroughly expand telecommunications services. The result was an under-supply of basic telecommunications services.
Even though information on the government’s initial policy objectives during the development of the telecommunications industry in Mexico are unclear, the changes in telecommunications policy during the history of the sector are consistent with changes in the broader economic development policies pursued at each governmental period. Following this historical trend, the character the 1990 reform took was aligned with the overall economic project that the government was pursuing at the time of its implementation. Privatization and deregulation were the prevailing policies pursued not only in the telecommunications sector but also in the overall Mexican economy during the Salinas administration.
The latest reform that took place in this sector did not fully overcome the weak regulatory culture or the lack of competition that has prevailed in the history of the telecommunications sector. The Mexican policy reform changed the ownership pattern and transformed the regulatory structure; however, the degree of competition introduced was limited. To be sure, policy reform