Cofetel: Iusacell risks sanctions over PTT

Mexican mobile operator Iusacell (NYSE: CEL) could face sanctions if it goes ahead with the launch of its new its push to talk (PTT) service called Radio Plus, a source at Mexican telecoms regulator Cofetel confirmed to BNamericas. The mobile operator is not currently authorized to offer this type of service, according to Cofetel. "If Iusacell decides to launch and sell the product, Cofetel will impose a sanction that could be economic in nature and whose amount would be defined by the board," the source said. Iusacell can get around the issue by applying for a specific permit to launch the services but the company has not done so, according to Cofetel. Iusacell is not the only one in this situation. "None of the mobile operators in Mexico are authorized to sell PPT services for the same reason as Iusacell: they are not included in the concession titles," Cofetel stated. Telcel, Unefon and Telefónica's MoviStar (NYSE: TEM) have had to suspend their launches while awaiting permission, according to the source. In November 2004, Cofetel ordered the country's mobile operators to stop advertising their PTT services on the basis that none of them had the proper authorization.