The following MCI WorldCom statement can be attributed to John
Stupka, President, Ventures and Alliances:
WASHINGTON, D.C. - - March 29, 2000 -- MCI WorldCom looks forward to
USTR's statement on the compliance of some of our most important
trading partners with their WTO obligations. While MCI WorldCom has
concerns about the implementation of the WTO agreement in various
countries, the situation in Mexico is especially egregious. The
problems in the Mexican telecom market are extremely serious, and we
encourage USTR to take decisive action to resolve these problems. The
engagement of the U.S. government would bring a glimmer of hope to what
has otherwise been a dark chapter in U.S.-Mexican trade relations.
Competitive carriers in Mexico have essentially been mugged by
Telmex, the dominant Mexican telecommunications carrier, which has used
its monopoly position to maintain its stranglehold on Mexican
consumers. Telmex has engaged in a classic price squeeze which allows
it to make more money from its competitors than from the customers it
loses; where cost to the competitors is not the issue, it has used its
control of essential facilities to stop its competitors from deploying
their products; and it has successfully paralyzed the Mexican
regulator.
A competitive telecommunications market, which Mexico committed to
in the WTO Telecom Agreement, is the foundation of the new information
economy. As a result of Mexico's failure to live up to its WTO
obligations, Telmex has maintained its monopoly and consumers have been
denied better prices, greater choices, and higher quality services. The
Mexican government has been repeatedly urged by U.S. government
agencies, the OECD, international private industry groups, and
independent researchers to meet its international commitments. Despite
this chorus, the regulator has been more concerned with the financial
health of Telmex than the emerging competition for Mexican consumers.
The time has come for Mexico to be held accountable. # # #
