On November 2, 2020, the Ministry of Communications and Transportation (hereinafter, the “Ministry” or “SCT”) published in the Federal Official Gazette (hereinafter, “DOF”) a Delegation Agreement by which some powers in matters of communications and technological development, as well as in matters of the railway and multimodal development competence of the ex- Undersecretariat of Communications and Technological Development were delegated to the heads of the Undersecretariat of Transportation and Infrastructure (hereinafter, the “Agreement”).

The above responds to the presidential decree published in the DOF on April 23, 2020, through which some austerity measures were established and that must be observed by the agencies and entities of the Federal Public Administration, which include, among others, the order to cancel ten undersecretaries of State (hereinafter, the “Decree”).

As a result of the Decree, on August 10, 2020, the Ministry issued the COMMUNICATION-181-2020 through which it was reported the administrative restructuring and elimination of the Undersecretary of Communications and Technological Development, which was in charge of Ing. Salma Jalife Villalón. This measure foresaw the permanence of the ex-undersecretary within the SCT so that she could continue with the projects she was carrying out. However, at the beginning of September of this year, various media announced the resignation of Ing. Jalife from the Secretariat, information that has not been officially confirmed by the SCT to date.

Therefore, the Agreement seeks to materialize the restructuring proposed by the SCT by delegating the exercise of the powers provided in the Federal Telecommunications and Broadcasting Law and other applicable administrative provisions in matters of communications and technological development to the Head of the Undersecretariat of Transportation. In addition, the exercise of the powers provided in the Regulatory Law of the Railway Service and other applicable administrative provisions to the Head of the Undersecretariat of Infrastructure, is delegated.

Likewise, in its attempt to organize the legal sphere applicable to the Ministry, on August 27, 2020, was presented to the National Commission for Regulatory Improvement the Draft of the Internal Regulations of the Ministry of Communications and Transportation. In general terms, the proposal presented defines the competence of public servants, administrative units, decentralized administrative bodies, and coordination with the new organic structure, without creating new obligations or sanctions or restricting any right for individuals.

However, even though the Regulations were approved by the National Commissioner in September of this year, it has not been published in the DOF.

We will continue to inform you about the publication of the Regulation and any modification derived from these changes.