Concessions are granted via auction to use and exploit geostationary orbital positions and other satellite orbits assigned to Mexico, with their corresponding frequency bands and rights to transmit and receive signals. SCT is reviewing different formulas of privatization of the current Morelos and Solidaridad satellite systems. If assignment entails opcration of a telccommunication system to a competitor, the assignment will be the subject of antitrust scrutiny. Foreign governments may not be assignees, pledges or mortgagees of concessions or its assets. Govermnent may also rescue a concession or permit for public interest considerations.
Rescue entails a taking.
The government would be required to indemnify the carrier, and the amount would bc determined by certified appraisers. Upon the expiration of a concession the frequency bands and satellite orbits will revert to the government. The government will have the right of first refusal to purchase assets employed for these purposes. Service to begin on 1.1.97. ILD interconnection agreements must be approved by SCT prior to their formalization.