Telecom Law Fails: How Drug Cartels Access Vital Communications Concessions

The proposal details that the Digital and Telecommunications Transformation Agency (DTTA) will require applicants to provide information such as: name, address, justification for the use of the concession permit, technical and economic capability, and source of funds. However, it does not specify how it will corroborate the data and whether it will investigate them thoroughly.

For the issuance of concession titles, whether commercial, social, public, or private, the Federal Telecommunications Institute (IFT) conducts prior consultations with government agencies to determine if they have information on the applicants or a particular opinion, especially from applicants that raise suspicions.

Critical infrastructures like telecommunications are a valuable asset for organized crime. These networks serve such groups as a tool for facilitating communication among members, coordinating activities, storing information, and in some cases, even committing crimes.

Labardini emphasized that due to this situation, verification is crucial in a context where one of the significant issues with organized crime is money laundering, a mechanism that allows them to request a permit through other individuals or groups.

“It is serious that the Agency, being part of the Federal Executive, does not propose any mechanism, respecting the presumption of innocence and due process, that allows finding evidence or information when an applicant shows signs of involvement with illicit activities,” Labardini lamented in an interview after her participation in the discussion.

Cases like the clandestine monitoring center discovered in Teocaltiche, Jalisco, have been documented, which was made up of a network of cameras and monitoring centers requiring connectivity to telecommunications networks.

Companies in the sector have also reported that organized crime is interested in creating their own telecommunications networks. For instance, Megacable previously told Expansión that it has detected thefts of tools used to lay and repair fiber optic networks from telecommunications technicians.

According to the National Chamber of Electronics, Telecommunications, and Information Technology Industries (Canieti), regions like Bajío and the north of the country are areas of higher risk for connectivity service companies to operate.

“It’s a real problem that due to threats from crime or because they steal infrastructure, cables, poles, concessionaires cannot operate or even deploy more network in the country. We do not want the critical mission infrastructures of this country to fall into the wrong hands,” Labardini warned.

Concerns about the Digital Agency and the Role of the State

Another concern voiced by experts and industry players is the concentration of power and functions that the DTTA will have. There are doubts about its role as a regulator of the sector.

The agency will have regulatory functions, public policy, paperwork, cybersecurity, space, satellite, and software development capabilities. Additionally, it will be an entity dependent on the Executive without checks and balances.

“We cannot allow a single entity, without verifiable technical guarantees or autonomy, to decide the future of our telecommunications and digital rights. An authority of this nature must have technical autonomy, a collegiate body that makes decisions in the manner of the IFT and Cofece,” warned Jorge Bravo, president of the Mexican Association for the Right to Information (Amedi).

The project proposes that the Agency directly allocate radio spectrum to state public companies such as the Federal Electricity Commission (CFE) or public-private companies like Altán Networks without compensations.

For Gabriel Contreras, a representative of the Business Coordination Council, this provision represents a violation of competition, as it places the state company at an advantage over other concessionaires, in addition to reducing incentives for investment.

“The Mexico Plan proposes that by 2030, Mexico will be among the top 10 economies in the world, aiming to attract an investment of 277,000 million dollars. But this requires creating conditions that attract and retain investments in an environment offering opportunities,” said Contreras during his participation in the discussion.

The forum participants agreed that the private sector is at risk of thriving, but they hope for modifications to the bill to avoid setbacks in digital matters and human rights.

“We trust that we will modify and make a total reservation of this opinion because if not, it could significantly affect the telecommunications industry and the country, but even the 4T itself since the citizenry will not overlook a law that controls and monitors people, inhibits digital development, and communities,” said Labardini.