April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center.

Presentación del tema: "April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center."— Transcripción de la presentación:

1 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center

2 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center WHAT KEEPS HOLDING THE MEXICAN ECONOMY BACK? A DISCUSSION ON COMPETITION AND CONSUMERS

3 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center Consumption is the sole end and purpose of all production... …The interest of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer. The maxim is so perfectly self-evident, that it would be absurd to attempt to prove it. But in the mercantile system, the interest of the consumer is almost constantly sacrificed to that of the producer; and it seems to consider production, and not consumption, as the ultimate end and object of all industry and commerce... Adam Smith, The Wealth of Nations, 1776

4 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CONSUMER – DRIVEN COMPETITION: A WIN – WIN STRATEGY

5 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center

6 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center HOWEVER… Alleged market failures in Telecomm Industry: High fixed costs + low marginal costs = Economies of Scale … Distortions, Market Power Lack of information GAVE BIRTH TO…

7 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center …REGULATION Well – meaning Legal Principles to Benefit Users: Promote fair competition aimed at: Lower prices Better quality and variety Universal serviceEfficient use of Spectrum Regulated rates for incumbent HOWEVER…

8 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center REGULATORY JUNGLE + MARKET POWER + NO LAW ENFORCEMENT = WEAK COMPETITION & CAPTIVE CONSUMERS

9 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center WELCOME TO THE JUNGLE Concession Titles: Inefficient instrument Does not protect Public Interest Obsolete, unenforceable provisions Charter of privileges & immunities Quality of service & reasonable pricing practices beyond surveillance Lengthy entry barrier Regulation costs + costly advertising: High prices

10 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center STANDARD SERVICE AGREEMENTS: DEVIL IS IN THE DETAILS

11 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center EXCESSIVE REQUIREMENTS Llenar contrato de servicio Autorizar investigación de crédito Si la forma de pago es efectivo: Efectuar el deposito en garantía o pago de rentas adelantadas (donde aplique) Si la forma de pago es Tarjeta de Crédito cargo: La Tarjeta de crédito debe estar a nombre del contratante. Si al consultar en Buró de Crédito el títular de la tarjeta no se encuentra, como opción se solicita copia del estado de cuenta con antigüedad no mayor a 30 días naturales y límite de crédito según esquema de contratación. Si no cuenta con este documento se acepta el último corte del banco con sello de la institución o el último estado de cuenta del cajero con antigüedad no mayor a 3 días hábiles de la fecha de contratación. En caso de haberse obtenido por Internet debe estar sellado por el banco. La tarjeta de crédito debe calcarse en el contrato de servicio. Se efectúe el cargo de la primera renta, fianza y activación (donde aplique). Pagaré firmado por el monto que corresponda al plan. Identificación vigente y oficial con foto y firma a nombre del titular. Se acepta cualquiera de las siguientes opciones: * Credencial de elector con fotografía * Cartilla de servicio militar nacional. * Licencia de manejo nacional (cualquier estado de la república) * Pasaporte (nacional o extranjero) * Visa láser Americana * Cédula profesional * Identificación de la SCT o PEMEX * En caso de ser militares se acepta identificación de la Secretaría de la Defensa Nacional. * En caso de ser extranjero la forma FM2 o FM3 se acepta como identificación. Es obligatorio que el contratante sea mayor de 18 años. En caso de que el cliente sea extranjero es obligatorio que presente la forma FM2 o FM3 dependiendo del caso, además debe presentar una TC emitida por un banco nacional, aun cuando pague en Efectivo. En caso de que el cliente active un plan con Servicio Telco directo, incluir Adendum Servicio Adicional Telco Directo, con la firma de aceptación del Cliente

12 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center Consumer concerns Miniscule print No supervision of T&Cs Abusive clauses No statutory redress Disproportionate penalties for early termination Use of personal data STANDARD SERVICE CONTRACTS

13 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center Unrestricted power to modify T&Cs by service providers COFETEL surrendered approval powers Locked equipment, outrageous penalties Confusing bundled sales, rates and deceiving advertising. Abuse of Credit Bureau threats Poor customer service post sale. STANDARD SERVICE CONTRACTS II

14 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center DIGITAL DIVIDE

15 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CONSUMERS- TO- BE Tax to poverty: Higher rates for Rural & Low Income Users Universal service Far from real. 2-3 million BB connections for 105 m people Scarce fiber optic deployments in remote areas Expensive satellite connections in rural areas Telemedicine, business, education, commerce, e-government applications left behind.

16 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center THIS IS WHY WE NEED TO LEAPFROG TO BROADBAND Public rural telephony (TPR) Per minute rates in pesos To Local fixed phone $ 1.50 To Local mobile on-net $ 1.50 To local mobile off-net $ 4.38 Domestic L.D. $ 4.08 International L.D. $ 9.00 SOURCE: http://www.telcel.com.mx/portal/telcel.portal;jsessionid=HLrpsy4Y116GmGDppmnYTyQJQ4Z2Xl4x8rtdp98 GTJww9v2ynfWC!- 777516597?_nfpb=true&_pageLabel=GRAL_DespliegueContenidoPage&seccion=68&pathContenido=%2F contenido%2Fservicios_comunicacion_negocio.html#rural

17 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CRITICAL ISSUES COMPROMISING CONSUMERS ECONOMY & OPPORTUNITIES High concentration in BroadBand by incumbent. The next monopoly? Low penetration of BB and Rounding calls to the next minute Roaming charges within on-net calls Opacity in rates & commercial practices Spectrum made scarce and expensive by Government. Not a wise call. Interconnection a huge business, curtailing growth

18 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center YET: SOMEWHERE OVER THE RAINBOW… THERE IS HOPE

19 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center ORGANIZED CONSUMERS DO MAKE A DIFFERENCE Consumers at the center of decisions that impact upon their health, safety, economy, wellbeing, foster development. Consumer organizations are an indispensable channel towards better practices and a genuine democracy. Empowered consumers can better counterbalance immense power of corporations and Government monopolies.

20 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center ALCONSUMIDOR: A PIONEER IN CONSUMER EMPOWERMENT ACCESS TO JUSTICE PROJECT: Introducing Class Actions to seek redress, deter abuses,inhibit harmful practices LEGAL COUNSEL For a limited number of low income citizens in emblematic cases of abuse or breach of contract. INFORMATION TO CONSUMERS Help consumers make well informed decisions.

21 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center A NEW PARADIGM: CUSTOMER SATISFACTION & FAIR PRACTICES Alconsumidor intends to establish a direct link with carriers & providers to remedy failures, breaches, eliminate overbilling and improve business practices. Alconsumidor invites carriers to its Transparency program: Contracts, titles, Ethics Codes and Manuals available. Arbitration sign-up for conflict resolution

22 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CONSUMERS PARTICIPATING IN POLICY MAKING Alconsumidor intends to encourage citizen participation in key policy and rule making processes, so that the voice of Consumers is heard and their rights enforced. Alconsumidor is placing the Consumer Agenda in the Public Domain.

23 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CONCLUSIONS The incentive system in Mexico is up-side- down in every aspect of public life. Systemic abuse vouched by impunity will harm both business and people devastating all. Incentives for fair dealing, fair competition, fair redress and corporate responsibility is a win- win and a sounder way to build larger markets.

24 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center CONCLUSIONS II Mexico challenges require active citizen participation. That is the price and the privilege of democracies. Corporations & Government shall no longer ignore Consumers. Remember we are the ones paying the bills. Consumer Associations need Recognition and Support from Government and initial funding from non-corporate sources.

25 April 8th, 2008ALCONSUMIDOR AC for The Woodrow Wilson Center THANK YOU FOR YOUR KIND ATTENTION www.alconsumidor.org