Maxcom fined by Mexico regulator

Mexican regulator IFT has fined Maxcom 31.6mn pesos (US$1.76mn) for failure to install, operate and exploit public telecom networks under the conditions of its license.

IFT announced in a press release that, after a compliance inspection and having exhausted the procedural legislative steps, it determined the telecom operator had not met quality standards concerning continuity of service and private circuits.

In accordance with article No. 298, paragraph B, section III of the federal telecommunications and broadcasting act, the regulator imposed the minimum fine, which amounts to around 1% of Maxcom's taxable income for FY14, according to information provided to IFT by the tax administration service (SAT).

The fine adds salt to Maxcom's wounds, as the company experienced a 12% drop in revenues in 2015 due to its elimination of domestic long distance charges.