2020 Annual Report
2020 ANNUAL REPORT
CONSOLIDATED FINANCIAL STATEMENTS
MEGACABLE.
Operators Other Than Preponderant Operators
Line item
2020 Rate
For termination of local service to mobile users under the "caller pays" modality
For termination of short messages by mobile users
$
0.099287
2019 Rate
0.112623
0.016518
For termination of local service used by fixed users
For termination of short messages by fixed users
0.003721
0.012662
0.015379
0.003360
0.012370
For origination services for local service by fixed users
For transit services
$
N/A
N/A
N/A
N/A
In 2019, the obligation that TELCEL/TELMEX/TELNOR as part of the PEA should no longer charge the Group for the
termination services on the network of said Preponderant Economic Agent was no longer in effect; however, the asymmetric
rates continued to prevail.
Therefore, for the year 2020 in relation to 2019, the following Interconnection rates with the PEA applied:
Line item
information, the prices of the inputs used, the weighted-average cost of capital, the exchange rate and the inflation based on
the expected average for 2019, which resulted in an impact for the Group as a consequence of the financial increase regarding
the considerations for interconnection services paid by MEGA CABLE, for the operators disputing such rates for that annuity,
as indicated in the preceding paragraph, since, the latter ends with a greater number of minutes in the networks of other
companies, due to the larger amount of subscribers it has. This impact will depend on the monthly number of minutes MEGA
CABLE ends in the network of each company during 2019. Among the operators other than PEA for the marginal cost of the
termination rates, no significant changes are represented regarding income or expenses.
MEGA CABLE asked the Telecommunications operators listed below to negotiate new interconnection conditions and also
negotiated interconnection disagreements for 2020 with the IFT for this same list of operators and signed Interconnection
Agreements in accordance with the resolutions issued by the Institute between January 1, and December 31, 2020.
AT&T, Total Play, Telmex - Telnor, Telcel, Starsatel, Pegaso, Maxcom, Marcatel, IENTC, Grupo Televisa, Axtel, Avantel.
In order to obtain access to the rates resolved by the Institute, the company must obtain a resolution by this authority
to support the rate for the year in question, in the understanding that said resolution is subject to tax. In other words, it
gives rise to the obligation for the corresponding concessionaires regarding its application and compliance. The legal
grounds supporting the Interconnection disputes are found in Article 129 of the Law, which states the dispute process
mechanisms and the deadlines pending resolution by the Institute. MEGA CABLE applies the rates established in the
Interconnection Agreements as long as the operators do not request the application of the new rates in accordance with
the Interconnection Agreements.
For termination of local service to mobile users under the "caller pays" modality $
For termination of short messages by mobile users
For origination services for local service by fixed users
For transit services on mobile networks
For termination of local service used by fixed users
For fixed network transit services
2020 Rate
0.025771
2019 Rate
0.028313
0.008723
0.009241
0.004088
0.003535
0.001884
0.003331
0.004441
0.001551
0.003151
0.004465
The operators that asked the IFT to resolve disputes regarding interconnection rates for 2020 with MEGA CABLE were:
AT&T, Total Play, Telmex - Telnor, Telcel, Starsatel, Pegaso, Maxcom, Marcatel, IENTC, Grupo Televisa, Axtel, Avantel.
These disputes related to obtaining the interconnection charges are based on Article 129 of the Law, which establishes
that no later than by July 15 of each year, the concessionaires must file with the Institute, the dispute corresponding to the
interconnection charges applicable to the following year. Should they fail to do so, they will not be able to apply the charges
under the resolution the following year.
The Institute resolved the applicable rates for fiscal year 2020 based on the total cost model that a company could avoid in
the long term if it stopped providing the relevant interconnection service but continued to provide the rest of the services,
besides allowing the recovery of common costs through allocation of costs and for fiscal year 2019 based on cost models
with a Long-Term Average Incremental Cost approach, used to determine the update, taking into account the service demand
SIGNAL RETRANSMISSION
MEGA CABLE continues to be bound to the obligation to retransmit, free of charge, the open broadcast signal rights held by
TELEVISA, IMAGEN and TV AZTECA on the network within its coverage areas, as well as Federal Public Institution signals.
In multiprogrammed signals, the obligation is limited to retransmit those with the highest-rated audiences, with the exception
of Federal Public Institutions to which the obligation for retransmission does apply.
Regarding all the processes described in the preceding paragraphs of this note, the conclusion, at the date of issue of the
consolidated financial statements, is that there is no material impact on the Group's financial position.
(2) Summary of significant accounting policies-
The Company has consistently applied the following accounting policies to the consolidated financial statements and have
been applied constantly by the Company, unless otherwise specified:
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