Americas > North America > Mexico > The Spanish operator Telefonica

Mexico: The Spanish operator Telefonica

2012/07/14

 

 

Telefonica seeks compensation from Mexico

The Spanish operator Telefonica has lodged a claim for over US$1 billion in damages against Mexico, claiming that regulatory changes made by the Central American country over the past few years have adversely affected both its revenue and investment plans.

The group claims that these regulatory changes contravene a treaty between Mexico and Spain aimed at protecting investment, and is seeking the assistance of the World Bank's International Centre for Settlement of Investment Disputes (ICSID).

The operator’s MEX14.737 billion (US$1.06 billion) claim is an attempt to offset revenue lost between 2006 and 2011 as a result of Mexico reducing its mobile termination rate (MTR). This lowered the amount that operators could charge rivals for connecting to their networks.

However, a recent statement from Telefonica confirmed that recent rulings in Mexico’s courts concerning the interconnection fee would prove beneficial to the company. The same statement noted: "We hope that a solution will be found quickly."

Related Articles
  • Mexican marimba band plans papal performance

    2016/01/28 At the same time as Pope Francis visits the southern Mexico national of Chiapas in February, the Diaz sisters will serenade him with music from the region's favorite instrument: the marimba. The wood-planked instrument resembles its metal cousin, the xylophone. And nobody knows marimbas better than the four Diaz sisters, who began playing them in churches three decades ago at the invitation of the late Chiapas Bishop Samuel Ruiz.
  • Energy Mexico Oil Gas Power

    2016/01/16 A new business era has begun in Mexico. Two years next the so-called energy reform ended the national monopoly that ruled for 70 years, private sector companies are getting ready to seize all the opportunities that will arise thanks to this new regulatory framework. The access gate to this new market is called Energy Mexico Oil Gas Power 2016 Expo & Congress, and it will take place on January 26-28 in the Centro Banamex convention center, in Mexico City. For the initial time next the overhaul undertaken by the reform, there will be an event specially designed to offer the majority up-to-date knowledge in the industry, high-level networking opportunities, and the majority advanced tools to make the difference in this brand new business environment.
  • Global growth will be disappointing in 2016: IMF's Lagarde

    2016/01/02 World economic increase will be disappointing next year and the outlook for the medium-term has as well deteriorated, the chief of the International Monetary Fund said in a guest article for German newspaper Handelsblatt published on Wednesday. IMF Managing Director Christine Lagarde said the prospect of rising interest rates in the United States and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide. Added to that, increase in world trade has slowed considerably and a decline in raw material prices is posing problems for economies based on these, while the financial sector in a lot of nations still has weaknesses and financial risks are rising in emerging markets, she said.
  • Peru-Colombia-Mexico-Chile Pacific Alliance boosts regional ties

    2015/12/26 Four years have passed since the Pacific Alliance united Peru with Colombia, Mexico and Chile and the benefits on the agreement are presently clear to see Peru has enjoyed sustained economic expansion during the completed decade, but with commodity prices falling in additional recent times the country’s government has been exploring new avenues for increase. Numerous sectors of the Andean country’s economy have by presently enjoyed rapid increase inclunding markets such as insurance and financial services, and the result has been an enlarged and affluent middle class. With this have come better amounts of disposable gain, much of it derived from the successes of the country’s extensive export-led industries.
  • Increase among the 21 Asia-Pacific Economic Cooperation (APEC)

    2015/11/18 Increase among the 21 Asia-Pacific Economic Cooperation (APEC) economies softened to 3.1 % in the second quarter of 2015, down from 3.2 % in the initial quarter and 3.4 % a year ago, according to an APEC economic analysis released on Tuesday. The statement said the increase slowdown reflected the prolonged weakness in world economic activity as the modest recovery in advanced economies was matched by a general slowdown in emerging market economies. The moderation in GDP levels could be attributed to declining investments and lacklustre exports, according to the statement. "Economies across the Asia-Pacific continue to grow but find themselves in a holding pattern of lower increase in the absence of high trade volumes," said Alan Bollard, Executive Director of the APEC Secretariat.