2020 Annual Report slide image

2020 Annual Report

2020 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS MEGACABLE. investment, quality and coverage commitments; refrain from engaging in discriminatory practices; establish and publish its Code of Business Practices; provide parental control for programming aimed at children and adolescents; provide information to the IFT allow it to inspect its premises; and present audited financial statements. The concessions that expired before January 2016 have been renewed. The entities holding concession titles include: Mega Cable, Megacable Comunicaciones de México, Servicio y Equipos en Telefonía, Internet y TV, and Myc Red. For the purposes of its accounting treatment, the Group has evaluated that said titles do not fall within the scope of IFRIC 12, Service concession agreements since rates are registered with the government, but there is no residual value that must be returned to the government. As at December 31, 2020 the Group has the following concessions in force: Year Number of concessions for: 30 years 10 years 5 4 21 16 Beginning 2013 Expiration 2023 2014 2024 1995 2025 18 1996 2026 31 1997 2027 1998 2028 1999 2029 2000 2030 2007 2037 2008 2038 2009 2039 2010 2040 2011 2041 2013 2043 2014 2044 2016 2046 4 0 3 2 2 1 + ∞ 3 236+2 8 4 The main characteristics of the concessions granted before 2017 that are still in force are as follows: i. General Purpose and services: the concessionaire agrees to install, operate, and use the Network and provide the services indicated in the concession. The services are provided through affiliates, associates, or subsidiaries, as long as the authority is satisfied with the fact that said companies have the necessary financial, legal, and technical capacity to provide the services. ii. iii. iv. Subscription or transfer of shares: it is an obligation to present to the authority, no later than 30 April of each year, a list of its main shareholders and respective share percentages. Appointment of a technical manager and legal representative. Provisions applicable to the services Quality of services: continuous and efficient provision of services. Quality control and measurement equipment: the concessionaire shall take the necessary steps to ensure the precision and reliability of the equipment for quality measurement purposes. Code of commercial practices: the concessionaire must prepare a code to describe the services it provides and the billing methodology and application of the corresponding rates. Emergency services: the concessionaire must present an action plan to prevent the interruption of services in the event of an act of God or force majeure. Modernization of the network: the concessionaire must keep its Network updated with the latest technological advances. Verification and information Information: the concessionaire must deliver the audited financial statements of its company within 150 calendar days following the closing of the corresponding year. Information on the network installation: the concessionaire must file quarterly progress reports on the installation of the network. Accounting information: the concessionaire must provide accounting information by service, region, function, and components of its Network. Commitments The concessionaire agrees to install with its own infrastructure, during the first three or five years, each of the stages of the coverage program indicated in the concession title. Term to start providing the service: the concessionaire must start to provide the service referred to in the concession no later than 365 calendar days after the date the concession is granted; however, an extension may be granted that is equal to half the term. As at December 31, 2020 and 2019, the Group has complied with all these disclosed commitments and the regulatory aspects to which it is subject. 52 52
View entire presentation