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04/26/2005 Entry: "No Internet dialtone in Mexico!"
I have just come across an interesting article on how Telmex is blocking VoIP traffic (for example to foreign IP telephony service providers like Vonage or Skype). As you may know, Telmex is the main fixed telephony carrier in Mexico and one of Latin America’s most profitable company thanks to a 98 percent hold on the last mile infrastructure.
Late 2004 in a landmark action, COFETEL (the Mexican FCC) closed down 13 VoIP companies who were operating without a proper carrier license. Mexico belongs to the select group of world countries that ban the use of VoIP to protect some de-facto monopolies, like in Panama and in Costa Rica. Carlos Slim certainly won’t object to the COFETEL’s wise decisions on that topic.
But what’s all the fuss about? Well, VoIP is a technology that allows anyone with a computer or an inexpensive analog telephone adapter to make really cheap phone calls over the Internet. Telmex’ dilemma is clearly shown in their quarterly results: how to avoid having their fast-growing broadband Internet service Infinitum mercilessly cannibalize their Pesos $6800 million per quarter domestic and international long distance telephony cash-cow.
Telmex’ reputation as a dirty player is so bad that nobody was surprised earlier this month to hear reports that access to Vonage from regions like Baja California had become virtually impossible. Rumors spread like wildfire that Telmex was actively barring Infinitum users from using any VoIP provider that could save them a few bucks on their calls to the US. I can picture Telmex network engineers devising Machiavellian schemes to garble the voice conversation between American grannies retired under the sun of Mexico and their grand-daughters in Oklahoma or Arkansas!
I just had the opportunity to speak with a high executive of Telmex who adamantly stated that the issues encountered by VoIP users in Baja California were due to a technical glitch beyond their control. Hence superficially at least the conspiracy theory seems unfounded.
Replies: 2 comments
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Posted by L'ombre d'une vague @ 05/12/2005 01:25 PM MEX
His blog very interesting and is amused. I have liked much. Him greeting from the city of Mexico. Good day
Posted by Daniel @ 04/28/2005 10:02 PM MEX
