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Mexico - Premium SMS, Short Code Requirements

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The regulations in Mexico caters and covers all of the Mobile Payment types, that includes Premium SMS BillingStandard Rate ServicesShort Codes, WAP Billing and Operator Billing.


Regulator

Comisi_ederal_de_Telecomunicaciones___COFETEL_logo___Google_Search.png Federal Telecommunications Commission (Comisión Federal de Telecomunicaciones - COFETEL)

COFETEL (Federal Telecommunications Commission) Is commissioned by the Ministry of Communications and Transport (SCT) for the regulation of the telecommunications infrastructure, and all the issues related to Radial transmissions, code and numeric phone assignments, telecommunications technology and networks certification.

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Carriers

next.PNG Nextel

Nextel Communications, commonly styled NEXTEL and formerly traded on the NASDAQ as NXTL, now a part of the Sprint Nextel Corporation, was a United States telecommunications firm operating a nationwide push to talk mobile communications system. Unlike other mobile networks, the Nextel network operated in the Specialized Mobile Radio band using iDEN technology from Motorola. 

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telcel_logo.jpg Telcel

Telcel is Mexico's largest mobile phone carrier, owned by América Móvil. Founded in 1989 and based in Mexico City, Telcel is the leading provider of wireless communications services in Mexico. As of December 31, 2006, Telcel's cellular network covered more than 63% of the geographical area of Mexico, including all major cities, and 90% of Mexico's population.

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logo_movistar.jpg            Movistar

Movistar is a major Spanish mobile phone operator owned by Telefónica Móviles. It operates in Spain and in many Latin American countries. It is the largest carrier in Spain with 22 million customers (cellphone services only) and 41.58% of market share. The Movistar name has been in use in Spain since the launch of GSM services in 1995.

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Iusacell_logo.png IUSACell

 The company provides cellular services reaching about 90% of Mexico's population, including Mexico City and received more licenses to cover the remaining regions in early 2005. It has more than 3.5 million subscribers (67% are prepaid). The company also offers local and long-distance telephony, messaging services, mobile television and wireless broadband services (BAM) over the only 3G nation-wide network in Mexico.

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Market Statistics

Summary

Mexico is the last OECD country yet to implement local loop unbundling. Basic telephony was still practically a monopoly held by Teléfonos de Mexico (Telmex). Telmex’s sister company, América Móvil, also dominates the mobile phone sector through its Mexican unit Telcel, although spectrum auctions planned for mid-2010 may have ushered new entry into the mobile market. Calls for increased competition in the industry continued to mount. Signs of strengthening regulation were emerging in the form of determinations by the competition agency, the CFC, that Telmex was a dominant player in the fixed line sector and Telcel a dominant player in the mobile sector. These decisions paved the way for Cofetel to impose stricter regulations on the conglomerate. In addition, in early 2010 the Calderon government reiterated its intention to strengthen laws and regulatory institutions in Mexico in the interests of greater competition.

[source]

 

Geography
Area: Total: 1,964,375 sq km Land: 1,943,945 sq km Water: 20,430 sq km
Cities: MEXICO CITY (capital) 19.319 million; Guadalajara 4.338 million; Monterrey 3.838 million; Puebla 2.278 million; Tijuana 1.629 million (2009)
Terrain: high, rugged mountains; low coastal plains; high plateaus; desert
Climate: varies from tropical to desert

 

People
Nationality: Noun: Mexican(s) Adjective: Mexican
Population: 113,724,226 (July 2011 est.)
Annual population growth rate: 1.102% (2011 est.)
Language: Spanish only 92.7%, Spanish and indigenous languages 5.7%, indigenous only 0.8%, unspecified 0.8%
Flag: Mexico-Flag.png


Government
Type: federal republic
Independence: 16 September 1810 (declared); 27 September 1821 (recognized by Spain)
Constitution: 5 February 1917
Branches: chief of state: President Felipe de Jesus CALDERON Hinojosa; note - the president is both the chief of state and head of government; cabinet: Cabinet appointed by the president; 
Political parties: Convergence for Democracy; Institutional Revolutionary Party; Labour Party; Mexican Green Ecological Party; National Action Party; New Alliance Party; Party of the Democratic Revolution
Suffrage: 18 years of age; universal

Economy
Nominal GDP: $1.567 trillion (2010 est.)
GDP per capita: $13,900 (2010 est.)
Annual GDP growth rate: 5.5% (2010 est.)
Natural resources: petroleum, silver, copper, gold, lead, zinc, natural gas, timber
Agriculture: corn, wheat, soy beans, rice, beans, cotton, coffee, fruit, tomatoes; beef, poultry, dairy products; wood products
Industry: food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism
Trade: Export - US 73.5%, Canada 7.5% (2010) Import - US 60.6%, China 6.6%, South Korea 5.2% (2010)

[source]

 

Market Growth

General region↓ Total number of Internet users (thousands)↓ Internet Users per 100 inhab.↓ Total population (thousands)↓ GDP per capita↓ GDP total (thousands)↓ Mobile subscibers per 100 inhab.↓ Total number of mobile subscribers (thousands)↓
America 34900 26.5 107,431 $9,489 $1040999999999.9 77.8 86500
[source] [source] [source] [source] [source] [source] [source] [source]

 

Currency

The peso (sign: $; code: MXN) is the currency of Mexico.

100 MXN in £GBP

100 MXN in $USD

100 MXN in €EUR

The coins commonly encountered in circulation have face values of 50¢, $1, $2, $5, $10, and $20. The $50, 10¢ and 5¢ coins are rarely seen and largely disliked by users. The $20 coin is not widely used as the $20 banknote. As of late 2006 and early 2007, the usage of 20¢ coins is also gradually declining. Small commodities are priced in multiples of 10¢, but stores may choose to round the total prices to 50¢. There is also a trend for supermarkets to ask customers to donate those cents to charities so that they can round the amount to 50¢ or 1 peso.

 

Approval Process

When applying for a dedicated code your draft promotions should be submitted to txtNation in Spanish for approval before being put in a public place. 

As part of the application process for a short code, you will need to complete a txtNation Customer Care Form (CCF).

 

Promotional Guidelines

To comply with Telcel guidelines, you need to follow these steps :

1. For each keyword :
- Price must clearly appear with VAT
- Legal information must appear as in the example below, including the 01800 toll free number. It is not permitted to remove anything.
- We need the URL/Mobile App associated to each keyword, as well as the link where we can find the advertisement. If a login/pass or an App is needed you need create the account for us and pass us the info. In case of a keyword used in many websites/services/apps we need the URL/Apps of ALL websites/service/Apps.
- You can put your own support email in the legal info, but you must leave "Responsable del servicio: Movilaction SA de CV."
- It is not allowed to ask to the user to send more than one SMS per transaction. Only one SMS per transaction is allowed.

2. All this information must be available in an up to date, shared Google document (spreadsheet).
- Keywords for which we don't have all the information will be shut down.
- For each found website/service that do not respect 1. you will get fined €5,000 + VAT.
- For each found website/service with adult content (only bikini is allowed), porn, gambling,... you will get fined €20,000 + VAT.
- For each found website where you instruct the user to send more than one SMS per transaction you will get fined €20,000 + VAT.

Your CCF will also be evaluated to ensure your service is delivering value for money and is honest and fair.


Legal Information Required on Promotions:

Servicio disponible para usuarios Telcel, Movistar, Iusacell y Nextel. El costo por SMS en la marcación 54045 es de {$price point} IVA Incluido con el que podrás descargar el contenido seleccionado. Tu SMS lo pagarás en tu próxima factura de teléfono si tienes contrato. Si con lo que cuentas es con un móvil de tarjeta, se te descontará automáticamente de tu saldo. Este servicio tiene un límite mensual de 65 SMS, este límite se establece para evitar abusos y proteger a los usuarios, por lo que, si usted sobrepasa dicho límite será el único responsable por sobrepasarlo. Los operadores no son responsables del servicio, su contenido ni su publicidad. Atención a clientes: 0********* de 9:00 am a 5:00 pm de Lunes a Viernes o {insert your customer support email} . Responsable del servicio: txtNation.

 

Here are some promotions in Mexico, please note these were captured before the above wording requirements were introduced:

mexico_example_promotions.png

 

mexico_example_promotions2.png

 

Messages Flow Requirements

At the time of writing there are currently no set regulation documents in Mexico regarding Message Flow Requirements in Premium SMS services. Your CCF will be evaluated to ensure your service is delivering value for money and is honest and fair.

 

Service Types

At the time of writing there are currently no set regulation documents in Mexico regarding Premium SMS services. Your CCF will be evaluated to ensure your service is delivering value for money and is honest and fair.

 

Billing Types

We operate both MO and MT billed dedicated lines in Mexico, however Telcel, who operate with a 80% market share, do not currently support MT billing. See forum entry "What are the SMS billing types available?" for more information on these billing types.

 

Available Tariffs

The current available tariffs in Mexico is:

10.00 MXN, 15.13 MXN, 23.20 MXN, 30.26 MXN

For a more up to date list of tariffs please ask your Account Manager for a Mexican Premium SMS Rate Card.

 

Short codes and Keywords

On our dedicated code in Mexico, we operate on a 5 digit short code for each carrier. Adult content is only available in the form of Bikini and requires approval.

 

Tax

The current Mexican rate of tax is available via Wikipedia. The out-payments on our rate cards are exclusive of VAT, so if you are VAT registered you can claim a higher out-payment than is shown.

 

Dedicated Codes 

Dedicated codes are available with a 2 to 3 month lead time depending on carrier availability, the carriers approve based on their backlog, the time of year, price point and service type. You can read more about Short Code Coverage, SMS Billing Services and Mobile Payments in Mexico via the txtNation Gateway.

 

Mexico has the following Mobile Payment options available, all of which fall under these regulations:

  • Premium SMS (P-SMS) including Short Code services
  • Operator Billing (Direct-to-bill)
  • WAP Billing
  • MSISDN Pass-through

Additional options for Mobile Payments and Messaging in Mexico include:

  • HLR Lookup
  • Bulk SMS 

Note: This page is updated as frequently as possible when we are informed from the regulators or mobile operators in Mexico of a change or update in regulations. There may be a latest version of Premium SMS, Mobile Payments or Short Code Regulations in Mexico. Please contact your account manager for more information.

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