Telmex fined over agreements with Dish

The Federal Institute of Telecommunications (IFT) of Mexico fined Telmex MX$ 5.3 million (USD 286,000) for failing to comply with the terms of its concession due to its agreements with DTH operator Dish Mexico. The telecommunications company said it will appeal the decision.

In a statement, the regulator explained that Telmex entered into a series of contracts that allowed it to indirectly exploit a concession of television services, something that is prohibited in its concession title.

According to IFT, between November 2008 and August 2014, both companies formed “a complex contractual system that allowed Telmex to influence the operation and exercise of the rights derived from the concession granted to Comercializadora de Frecuencias Satelitales, S de RL. de C.V to provide the restricted satellite television service (DTH) in the country. ”

Telmex informed the Mexican Stock Exchange (BMV) that it was notified of the fine for non-compliance of “condition 1.9 of its concession title”, which refers to “the direct or indirect exploitation of a concession of TV services”. Carlos Slim’s company said it was “studying IFT’s decision” and it will “appeal in accordance with applicable laws”.

The commercial alliance between both companies began in 2008 when Telmex started providing billing services to the DTH system.