Competition, regulation and institutional framework in telecommunications, implications for NGN in Mexico

When analyzing competition in telecommunication markets it is fundamental to take into account their specific characteristics. Moreover, it is important to understand the temporal evolution of competition as a result of multiple contextual factors. For these reasons the present study analyzes competition in mobile telecommunications, measured through the Lerner Index, and explains its evolution through the influence of regulation and the institutional framework. Mexico is used as a case study, because it is a noteworthy example given its recent efforts to promote competition in telecommunications services. The results show an improvement in competition associated with recent regulatory reforms. Based on them the paper discusses how the level of competition could be affected by key regulatory and public policy aspects that will take place as a result of the development of NGN.