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.
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