Nonprofit ISP in Mexico Wins Court Battle Against Huge Federal Fee
A nonprofit telecommunications provider offering voice and data services to remote areas in southern Mexico has avoided a crippling federal fee after challenging it in court.
A Mexican court recently ordered the Federal Institute of Telecommunications to reconsider the spectrum fee for Indigenous Community Telecommunications (ICT), which serves about 3,500 customers. The fee, about 1 million pesos or US$50,000, is equal to about half of ITC’s annual operating budget, said Peter Bloom, founder and a board member of ITC.
But the ruling, by the Collegiate Circuit Court on Administrative Matters, Specialized in Economic Competition, Broadcasting and Telecommunications, doesn’t end the legal battle between the nonprofit ISP and the federal regulator.
ITC doesn’t feel like the regulator honored the ruling, Bloom said, even though it exempted the ISP from fees in 2017 and beyond as long as it maintains its nonprofit status.
The court instructed the regulator to “take into account fundamental human and constitutional rights when deciding how or if to charge for spectrum use,” he added. “In our case, our mission is social, but we were being taxed as a commercial cellular provider in an amount that would make it impossible for us to continue operating.”
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