Mexico: AM to FM Conversion - November 24, 2016 - Official Gazette (Decision)

This is a machine translated document from Mexico's Official Gazette (their eqivilent of the US's Federal Register). This document was from November 24, 2016 and it outlines the overall procedure that AM broadcast stations have to go through in order to convert to FM operation. There are few key points of interest in this document:

The IFT (Mexico's FCC) will permit full power stations at the same site to be separated by only two channels (400 kHz). In the USA, this is only permitted if at least one of the two stations is an FM translator or an LPFM station.
While the document states that the new stations will be Class A stations with a maximum range of 24 km, there are many stations that would be considered a B1 class (25 kW).
Concessionaires (licensees) will have 18 months to construct their facility.
Once the FM station is on the air, the broadcaster may operate both the AM and FM stations for a period of one year and then the AM station must go off the air and the frequency returned to the Government.

This document contains tables that may not render correctly on a mobile device.

The original Spanish document can be found at the following URL:
http://dof.gob.mx/nota_detalle.php?codigo=5462362&fecha=24/11/2016

AGREEMENT THROUGH WHICH THE FLEET TELECOMMUNICATIONS INSTITUTE'S PLENARY APPROVES AND ISSUES THE GUIDELINES THROUGH WHICH THE FEDERAL TELECOMMUNICATIONS INSTITUTE ESTABLISHES THE CRITERIA FOR THE CHANGE OF FREQUENCIES OF SOUND BROADCASTING STATIONS OPERATING IN THE MODULATED MODULATED AMPLITUDE AMPLITY BAND.

BACKGROUND

1. Agreement Frequency Shift 2008. On September 15, 2008 was published in the Daily Official of the Federation (hereinafter the " DOF " ) the " Agreement establishes the requirements to carry out the change of frequencies authorized to provide the radio service and operating in the Amplitude Modulated band, in order to optimize the use, exploitation and exploitation of a good in the public domain in transition to digital radio. " (hereinafter, the " Agreement 2008 " ).

2. Decree of Constitutional Reform in the matter of telecommunications and broadcasting . On June 11, 2013, the DOF published the " Decree by which various provisions of articles 6th, 7th, 27th, 28th, 73rd, 78th, 94th and 105th are amended and added. of the Political Constitution of the United Mexican States, in matters of telecommunications " (hereinafter, the " Decree " ), by means of which the Federal Institute of Telecommunications (hereinafter, the " Institute " ) was created, as a autonomous body with its own legal personality and assets, whose purpose is to regulate, promote and supervise the use, exploitation and exploitation of the radioelectric spectrum, networks and the provision of broadcasting and telecommunications services, as well as being the authority in matters of economic competition in the aforementioned service sectors.

3. Issuance of the Federal Telecommunications and Broadcasting Law . To July 14 of 2014, it was published in the Official Gazette " Decree on the Federal Act are issued Telecommunications and Broadcasting and the Law on Public Broadcasting System State Mexicano, and amending, supplementing and repealing various provisions in matters of telecommunications and broadcasting " , (hereinafter, the " Decree of Law " ) which, in terms of the provisions of its transitory First Article, entered into force thirty calendar days following its publication, that is, the 13th August, 2014

4. Issuance of the Organic Statute of the Federal Institute of Telecommunications . On September 4 , 2014, the " Organic Statute of the Federal Institute of Telecommunications " (hereinafter the " Statute " ) was published in the DOF , which entered into force on September 26 , 2014.

5. Work program agreement to reorganize the spectrum. On December 16, 2014, at its XXXVIII Extraordinary Session, the Plenary of the Institute, by means of agreement P / IFT / EXT / 161214/278, approved the " Agreement by which the Plenary of the Federal Institute of Telecommunications approves the elements to be included in the National Radio Spectrum Program and in the Work Program to guarantee the optimal use of the 700 MHz and 2.5 GHz bands under the principles of universal, non-discriminatory, shared and continuous access, and issues the Work Program to Reorganize the Radioelectric Spectrum to Radio and Television Stations. " (hereinafter referred to as " Agreement 2014 " ), which was sent on December 18 of the same year to the Secretary of Communications and Transportation with the purpose of that agreement and its annex, the " Program of Work to Reorganize the Radioelectric Spectrum to Radio and Television Stations " ( hereinafter, the " Work Program " ), were considered and included in the National Radioelectric Spectrum Program .

6. Public Consultation. On June 17, 2016, the Plenary of the Institute issued the Agreement through which the preliminary draft " GUIDELINES BY WHICH THE FEDERAL TELECOMMUNICATIONS INSTITUTE ESTABLISHES THE CRITERIA FOR THE CHANGE OF FREQUENCIES OF SONORA BROADCASTING STATIONS THAT WERE SUBJECT TO PUBLIC CONSULTATION OPERATE IN THE MODULATED MODIFIED FREQUENCY AMPLITUDE BAND " (hereinafter, the " Preliminary Draft " ) in compliance with the provisions of Article 51 of the Federal Telecommunications and Broadcasting Law (hereinafter, the " Law ") ). The public consultation was held for a period of 30 working days, from June 20 to August 12, 2016.

7. Opinion of the Coordination of Regulatory Improvement. The Regulatory Policy Unit developed and

The Regulatory Impact Analysis was submitted for consideration by the General Regulatory Improvement Coordination , so that it could issue the corresponding non-binding opinion, which happened through the official letter IFT / 221 / UPR7DG-DTR / 229/2016 dated October 17, 2016 The Regulatory Impact Analysis prepared is published on the Institute's Internet portal.

In virtue of the aforementioned background and,

CONSIDERING

FIRST. COMPETENCE OF THE INSTITUTE.- That in accordance with the provisions of article 6o. Section B, Section II, of the Political Constitution of the United Mexican States (hereinafter, the " Constitution " ), telecommunications are public services of general interest, so that the State will guarantee that they are provided in conditions of competition, quality , plurality, universal coverage, interconnection, convergence and continuity.

The fifteenth paragraph of article 28 of the Constitution establishes that the Institute is an autonomous body , whose purpose is the efficient development of radio broadcasting and telecommunications, in accordance with the provisions of the Constitution itself and in the terms established by law.

For this purpose, it is responsible for the regulation, promotion and supervision of the use, exploitation and exploitation of the radioelectric spectrum, orbital resources, satellite services, networks and the provision of broadcasting and telecommunications services, as well as access to active, passive infrastructure and other essential inputs, in terms of the precept of the invoked Constitution, as well as of article 7o. of the Law, guaranteeing what is established in article 6o. of the Constitution. Likewise, in accordance with the 16th paragraph of Article 28 of the Constitution, the Institute is the authority in matters of economic competence of the broadcasting and telecommunications sectors, so that in these they will exercise exclusive the powers that establish the article 28 of the Constitution and the Law and the Federal Law of Economic Competition for the Federal Commission of Economic Competition.

Likewise, in accordance with section IV of the twentieth paragraph of article 28 of the Constitution, the Institute may issue administrative regulations of a general nature exclusively for the fulfillment of its regulatory function in the sector of its competence. Likewise, in accordance with the provisions of article 15, section I, of the Law, the Institute is responsible for issuing administrative provisions of a general nature, guidelines, technical regulations in the field of telecommunications and broadcasting; as well as other provisions for compliance with the provisions of the Law. On the other hand, in accordance with article 7, second paragraph, of the Law and section I of article 6. of the Statute, the Institute has the attribution of regulate, promote and supervise the efficient use, exploitation and exploitation of the radioelectric spectrum, telecommunications networks and the provision of broadcasting and telecommunications services, as well as access to active, passive and essential infrastructure.

In addition, article Eighteen transitory of the Decree of Law, establishes that in the determination of the work program, the Institute will seek the development of the relevant market of the radio, the migration of the greatest possible number of concession stations of the AM band to FM , the strengthening of the conditions of competition and continuity in the provision of services.

For the foregoing, and based on articles 6, paragraph B, section II and 28, paragraphs fifteen, sixteenth and twentieth, section IV, of the Constitution, 1, 2, 7, 15 section I of the Law, Eighteen Transitory of the Decree of Law and 1, 4, fraction I, and 6o. Section I of the Statute, the Plenum of the Institute is competent to issue this Agreement and the respective Guidelines.

SECOND. DIVERSITY IN BROADCASTING.- That broadcasting satisfies a sociocultural need for what should be available to the whole society. In addition, because of its impact on public opinion , regardless of its impact on cultural aspects, radio broadcasting is an important information and social cohesion tool. Based on these precepts, Article 6o. of the Constitution states that:

" ( ... ) Broadcasting is a public service of general interest, so the State will guarantee that it is provided in conditions of competence and quality and that it provides the benefits of culture to the entire population, preserving plurality and truthfulness. of the information, as well as the promotion of the values of the national identity, contributing to the purposes established in article 3 .. Of this Constitution. ( ... ) " .

On August 26, 2011, UNESCO, at the 187th meeting of its Executive Board, points out the following in point 13 of the agenda, regarding the radio:

" ( ... ) low-cost technology that allows receiving and transmitting, and that offers the possibility of reaching global, national or local audiences." It is argued that radio production is simple and inexpensive, which is ideal in with low literacy rates or to reach restricted specialized audiences, such as linguistic or cultural minorities For many communities it is the only means of communication available and, certainly, the only one open to the voices and concerns of women, youth and the poor . the radio is also an essential component of emergency communication systems, ideal to support disaster relief activities. The incorporation of digital technologies is opening up new possibilities for radio, such as Internet radio and " podcasts " that are transmitted over the Internet to computers or mobile devices , further reducing access difficulties and facilitating wider dissemination ( . .. ) " .

According to the Inter-American Commission on Human Rights, the essential role played by the media to promote a true democratic debate on public affairs and to quantify the process of selecting preferences in private or individual matters is clear . For this reason, the Inter-American Court of Human Rights has been emphatic in pointing out that freedom and diversity must be guiding principles of the regulation of broadcasting.

Likewise, the Joint Declaration on Diversity in OAS Broadcasting of December 12, 2007 establishes that " the different types of media (public independent of the Executive Branch , private for profit, and community or private non-profit profit) must be recognized and must be able to access, in conditions of equity, all available transmission platforms, including the new digital dividend. "

On the other hand, through the " Indicators of Media Development: Framework for evaluating social media " , published in 2008, UNESCO clarifies the need for spectrum management to be oriented towards a pluralistic media environment. According to this, it must be ensured that the plans for its use equitably share the diffusion frequencies between public, private and community media .

Taking into account the above, the scope of this agreement is established for all types of sound broadcasting concessionaires: commercial, public and social.

THIRD. REORGANIZATION OF THE SPECTRUM.- That the 2008 Agreement, among other things, sought to improve the conditions of competition in the sound broadcasting market and, derived from it, 525 stations that operated in the Amplitude Modulated band (hereinafter, " AM " ) requested and obtained their frequency change to the Modulated Frequency band (hereinafter, " FM " ). On the other hand, 171 AM stations established in 48 localities in the country were not able to submit a frequency change request as there was no spectral adequacy to carry out this migration.

The Decree of Law established in its article Eighteenth transitory that the Institute should seek, among others, the migration of the largest possible number of stations in the AM band to FM:

" ( ... ) In the determination of the work program, the Institute will seek the development of the relevant radio market, the migration of the largest possible number of concession stations from the AM to FM band, the strengthening of the conditions of competition and continuity in the provision of services ( ... ) " .

Subsequently, in the 2014 Agreement, specific actions were established with deadlines for their execution. Actions 2 and 3 of this agreement are directly related to the process of changing frequency from AM to FM:

· Action 2. Operation of FM broadcasting stations in the same location with separation between main carriers less than 800 kHz.

- Carry out the necessary technical studies to verify the operation of FM broadcasting stations with separations less than 800 kHz between their main carriers, including the use of digital transmissions.

- After public consultation, issue general provisions for the efficient use of the band with the new considerations.

· Action 3. Evaluation of alternatives for the migration of radio stations in AM to FM.

- Define and evaluate regulatory alternatives for radio concessionaires that operate AM stations to have operations in the FM band.

- After public consultation, implement the alternatives that, if applicable, have been found to be viable for the migration of the sound broadcasting service from AM to FM.

As a result, on April 5, 2016, Technical Provision IFT-002-2016, " Specifications and Requirements for the Installation and Operation of Sonic Broadcasting Stations in Frequency Modulated in the 88 MHz to 108 MHz Band, was published in the DOF. " . In Chapter 12.1 of the Sole Annex of that provision, it is established that:

" ( ... ) the Institute may establish a separation between adjacent carrier frequencies of at least 400 kHz, provided that its operation is guaranteed in accordance with the parameters established in this Technical Provision ( ... ) " .

Obtaining, with this, the possibility of having a greater number of frequencies in this band, from which the Institute carried out an analysis to identify the availability of spectrum in the locations referred to in this recital, taking into account the applicable technical provisions and the bilateral agreements that Mexico has concluded with other countries. Based on this, 69 frequencies were identified , distributed in 40 locations.

On the other hand, it is emphasized that the function of community and indigenous social radio is to promote the social inclusion of historically marginalized sectors (such as indigenous communities), encouraging the creation of informative public spaces for their development. Community and indigenous social concessions were created to favor these communities, and their interests are: the development of their community, the diffusion of their culture, community service and the preservation of their mother tongue.

The Inter-American Commission on Human Rights and the Special Rapporteur for Freedom of Expression have recognized that community media meet in our region a function essential to the full exercise of freedom of expression and the right of access to information, have established that it is necessary that the States recognize them and that there are contemplated reserves of spectrum for this type of media, as well as equitable conditions of access to licenses that differentiate the realities different from non-commercial media.

Article 2 of the Political Constitution of the United Mexican States establishes that the three levels of government have the obligation to extend the communications network in order to ensure the integration of their communities:

" ( ... ) B. The Federation, States and Municipalities, to promote equal opportunities for indigenous people and eliminate any discriminatory practices, establish institutions and determine the necessary policies to guarantee the enforcement of indigenous rights. and the integral development of their peoples and communities, which should be designed and operated jointly with them.

To reduce the deficiencies and lags that affect indigenous peoples and communities, these authorities have the obligation to:

( ... )

SAW. Extend the communications network that allows the integration of communities, through the construction and expansion of communication and telecommunication routes. Establish conditions for indigenous peoples and communities to acquire, operate and administer means of communication, in the terms determined by the laws of the matter . ( ... ) "

Derived from the foregoing, for the granting of sound broadcasting concessions for community and indigenous use , article 90 of the Law provides for reserved segments of the FM sound broadcasting band:

" ( ... ) The Institute must reserve for community and indigenous FM radio stations ten percent of the FM sound broadcasting band, which ranges from 88 to 108 MHz. This percentage will be concessioned in the upper part of the radio. the referred band ( ... ) " .

For the above, and in order to comply with the Law mandate, a number of frequencies equal to the number of frequencies located in the upper part of the FM band (106 MHz to 108 MHz) has been reserved for each location. Resulting in 22 frequencies reserved for community and indigenous stations.

Therefore, for the process of changing frequency, there are 47 FM frequencies distributed in 40 locations, as shown in the following table.

Regarding the previous table, the following observations should be taken into consideration:

· Column A) indicates the state of the Mexican Republic where the localities that are the object of this process are located.

· Column B) indicates the locations subject to the frequency change.

· Column C) indicates the localities taken as a reference for determining the frequencies available in a certain group of localities.

· Column D indicates the geographic coordinates of the reference location, which the Institute used as a reference to determine the available frequencies.

In order to maximize the allocation of new frequencies in FM, avoiding interference, it is determined that the stations that migrate to FM will be Class A, that is, that their maximum apparent radiated power is 3 kW, with a maximum range of 24 km and with a separation of 400 kHz between adjacent carriers .

It should be mentioned that for the case of towns located in the border area with the United States, the use of the indicated frequencies is subject to the coordination processes with the competent authorities of the United States of America, in accordance with applicable bilateral instruments. .

In addition, in accordance with Article 2 of the Law, at all times the State will maintain the original, inalienable and imprescriptible domain over the radio spectrum.

Based on this precept, Article 105 of the Law establishes the following:

" The Institute may change or rescue frequency bands or orbital resources in any of the following cases:

I. When the public interest requires it;

II. For reasons of national security, at the request of the Federal Executive;

III. For the introduction of new technologies;

IV. To solve problems of harmful interference;

V. To comply with international treaties signed by the Mexican State;

SAW. For the reordering of frequency bands, and

VII. For the continuity of a public service.

In the case of changing frequencies, the Institute may grant directly to the concessionaire new frequency bands through which the services originally provided may be offered . ( ... ) " .

Thus, the Institute has the faculties to reorder the frequency bands when one of the aforementioned cases is presented.

Likewise, Article 106 of the Law states that the change of frequency bands may be carried out ex officio or at the request of an interested party and that when the concessionaire requests the change, the Institute must resolve within 90 (ninety) business days following the date of application presentation.

On the other hand, the Federal Law of Rights establishes the fees that will have to be paid for the study and, where appropriate, the authorization of the requests for technical, administrative, operational and legal modifications of the concession titles in telecommunications and broadcasting.

QUARTER. Migration of stations from AM to FM .- That by virtue of what is stated in the preceding recital , the Institute considers it convenient to grant the possibility to those concessionaires that operate in the AM band, to request the change to operate in the FM band. .

The agreement clearly establishes the process that must be followed by concessionaires who wish to migrate their AM to FM stations in those localities established in this agreement. Based on article 106 of the Law, the change of frequency bands may be done at the request of the interested party, likewise, article 155 of the Law establishes that for any change, in the radio broadcasting stations and their complementary ones, that affects the conditions of propagation or interference, the concessionaire must submit a request to the Institute, accompanied by a favorable opinion from the competent authority in aeronautical matters .

On the other hand, in order to ensure an adequate process of analyzing the applications submitted and to grant certainty to the participants, it is considered appropriate to establish that when the corresponding request does not contain the data and / or information required by the Institute, it will prevent to the applicant so that within the term of 15 (fifteen) business days, counted from the following one to the one in which the corresponding notification takes effect , correct the corresponding omission or defect. The foregoing, in accordance with article 17-A of the " Federal Law of Administrative Procedure " which establishes:

" When the writings submitted by the interested parties do not contain the data or do not comply with the applicable requirements, the corresponding decentralized agency or agency must warn the interested parties, in writing and only once, to correct the omission within the term established the dependency or decentralized agency, which may not be less than five business days after the notification has taken effect , after the corresponding deadline without venting the prevention, the procedure will be rejected. ( ... ) " .

Given that the radio spectrum is a scarce resource and insufficient to meet the demand of the broadcasting sector and that the number of FM frequencies obtained through the reduction in the separation of adjacent carrier frequencies is considerably smaller than the number of stations that operate in AM, it is necessary to establish clear and transparent priority criteria that allow the efficient allocation of the available spectrum.

The migration process seeks to comply mainly with the objective of migrating as many stations as possible from the AM to FM band as established in the article Eighteenth Transitory Eighth:

Considering that the FM audience is considerably larger than that of AM, by seeking the migration of the largest possible number of AM stations to FM, the social function of the radio is strengthened. In addition, it is intended that the migration process be equitable, benefiting the largest number of Economic Interest Groups (hereinafter, " GIE " ).

With the establishment of objective and clear priority criteria, the aim is to strengthen the conditions of competition and free competition, and to achieve maximum use of the available radioelectric spectrum

Due to the above, and with the purpose of carrying out an impartial process, it has been determined that the first available frequencies are granted under the rule that each GIE can only receive one frequency available per location, and, with the purpose of not there are frequencies without being used, in case there are more frequencies available, it is determined that in the cases of those localities where there are still available frequencies, after having granted a frequency to each GIE, under the priority criteria, these They are accorded preference given to GIE having fewer stations in FM.

In another order of ideas, broadcasting cohesion, integrates and connects the population with the information that motivates the reflection and profiles the behaviors and moods with which it participates and intervenes in national life. From different levels of government and institutional fields, radioelectronic media reach the population with information and defined content. According to the OAS, the public media can and must play an essential role in ensuring the plurality and diversity of voices needed in a democratic society. Its role is fundamental when it comes to providing contents that are not necessarily commercial, of high quality, articulated with the informative, educational and of the population. Thus, they contribute to the improvement of social life and the development of the country.

Taking into account these precepts, Article 56 of the Law establishes:

" ( ... ) The Institute will guarantee the availability of frequency bands of the radioelectric spectrum or network capacity for the Federal Executive for national security, public security, connectivity of public places and social coverage and other needs, functions, purposes and objectives to For this purpose, it will grant directly, without consideration, with preference over third parties, the necessary public use concessions , after evaluating its consistency with the principles and objectives established by this Law for the administration of the radio spectrum, the program National Radio Spectrum Program and the Frequency Band Program ( ... ) " .

Based on this mandate, it is established to give preference to the public use concessions of the Federal Executive in the migration process.

On the other hand, the concessionaires that obtain the authorization of the Institute to carry out the change of frequency from AM to FM, will have to start FM operations in accordance with the term established by article 156 of the Law:

" The Institute will set a deadline of no more than one hundred and eighty days for the start of the provision of the services of a transmitter as well as for changes in the location of the transmission plant of the same, taking into account the calculations presented by the concessionaire, in accordance with the approved plans.

In the case of modifications of other technical parameters of operation of the station, the Institute will set deadlines of no more than ninety calendar days, unless the concessionaire submits information with which it sustains that requires a longer period to carry out said works ( . .. ) " .

The change of frequency from AM to FM may involve changes in the location of the transmitting plant, so in order to start FM operations, it is considered appropriate to establish a period of 180 (one hundred and eighty) days from the day following that in which the approval of the technical parameters has been notified.

In another order of ideas, taking into account the tendency of the sound broadcasting sector to offer hybrid transmissions, this could force dealers to migrate to FM to modernize their infrastructure in the near future in order to be competitive and take advantage of the advantages inherent to the Digital Terrestrial Radio (hereinafter, " RDT " ).

Likewise, the standardization of the In Band On Chanel system (hereinafter, " IBOC " ) for the transmission of RDT was made official with the " Agreement by which the standard for digital terrestrial radio is adopted and the policy is established so that concessionaires and licensees of broadcasting in the bands 535-1705 kHz and 88-108 MHz, carry out the transition to digital technology voluntarily " , published on 16 June of 2011 in the DOF. In said agreement it was established that broadcasting concessionaires and permit holders wishing to initiate the transition to the RDT should use the IBOC standard in hybrid mode, andtransmit, at least, the digital replica of the analog signal in its coverage area.

The sound broadcasting system IBOC has the advantage of facilitating the progressive penetration of digital broadcasting systems through the hybrid transmission of analog and digital signals in the same portion of the spectrum; with this, the need to grant new spectrum channels to transmit the digital signal is avoided . This coexistence, in addition to allowing the efficient use of the radio spectrum, allows a gradual and reasoned transition to digital broadcasting.

Some of the main characteristics of this system are the transmission of a superior audio quality , similar to that of a compact disc, as well as the transmission of data through its adjacent carriers , which allow the dissemination of additional information such as: the broadcaster, title of the song or program, information about telephones in the booth and even additional information services such as weather, news, traffic, transmission of images relating to programming, notices, etc.

In addition, with the adoption of IBOC, the possibility of transmitting, in addition to the analogue signal, up to four digital channels in the same bandwidth is opened , which is known as multiprogramming, achieving a more efficient use of the spectrum. Multiprogramming is of utmost importance to boost the penetration of the RDT, since the main attraction for the public to consider acquiring digital receivers is having the possibility of accessing contents that are not available in the analog service.

Among the advantages of multiprogramming, inherent to the RDT, the following can be mentioned:

· The opportunity to commercialize multiprogramming channels in case the concessionaire does not have sufficient contents to use all the additional channels.

· Users can receive specific benefits, such as traffic alerts, weather or for emergencies.

· Expansion in the content offer. When there is a greater amount of supply, there will be positive impacts for the audience and for advertisers. In addition, the generation of relevant content will be rewarded .

· Ease to access a radio " channel " (programming channel in Multiprogramming), since they will not have to invest in infrastructure or spectrum.

On the other hand, the penetration of RDT recipients in the country has been slow and the incentives for its commercialization are low, given the limited supply of content on this platform.

To date, there are approximately 32 FM stations operating in the country with digital technology, which is low compared to other countries: the United States (204), the United Kingdom (238), Switzerland (123), Norway (108).

Taking into account that the advance of digital radio can be promoted from the transmission, through the adoption of the IBOC standard by the radio broadcasting concessionaires, and from the reception, through the commercialization of digital receivers, based on the faculties of the Institute, it is established that the concessionaries of sound broadcasting whose request for change of frequency is authorized, migrate to FM using the IBOC standard.

As mentioned above, the RDT offers the possibility of multiprogramming, which brings many advantages. However, article 8 of the " General Guidelines for Access to Multiprogramming " states:

" Access to Multiprogramming is voluntary on the part of the Broadcasting Concessionaires ( ... ) " .

So the dealer has the freedom to multiprogram according to their convenience and possibilities. Thus, it will be able, in case of being interested, to provide access to programming channels in multiprogramming to other programmers; including, among others, national, independent, foreign programmers or radio broadcasting concessionaires.

In another order of ideas, as long as the process of changing frequencies that is the subject of this agreement is carried out, it is necessary to guarantee the provision of the radio service in order to protect the social function that it performs, so it is convenient that the concessionaires who benefit from the benefits of this agreement continue to use the frequency of AM for a period of time not exceeding one year, provided that they transmit the same programming simultaneously in both bands. The Institute may extend this term in the event that said signal is the only one that is received in a certain area or locality.

The authorization of change of frequency must not modify the term of validity of the concessions or permits granted originally and in addition it must not extinguish the obligations contracted by the concession holder during the use, exploitation or exploitation of the frequency of AM object of transition. The Article 107 of the Act provides:

" In the case of the change of frequencies for any of the cases foreseen in article 105, the concessionaire must accept, in advance, the new conditions established for the purpose by the Institute.

Once the concessionaire accepts the new conditions, the Institute will make the pertinent modifications to the concession and will foresee what is necessary for its efficient exploitation . The concessionaire will be subject to comply with the applicable legal, regulatory or administrative provisions.

In no case will the term of the concession be modified. In the event that the concessionaire does not accept the change or the conditions established by the Institute, the latter may proceed to rescue the frequency bands ( ... ) " .

In addition, it is worth mentioning that Article 113 of the Law establishes:

" The single concession may be extended by the Institute, provided that the concessionaire has requested it within a year prior to the start of the last fifth of the term of the concession, is up to date in complying with the obligations established in the Law and other applicable provisions, as well as in its concession title and accept, in advance, the new conditions that may be established, as the case may be, and the Institute will resolve the pertinent one hundred and eighty business days following the filing of the application ( ... ) " .

Similarly, Article 114 of the Law states:

" For the granting of extensions of concessions of frequency bands or orbital resources, it will require the concessionaire to request the Institute within the year prior to the start of the last fifth of the term of the concession is at the current compliance with the obligations established in the Law and other applicable provisions, as well as in its concession title. ( ... ) "

Therefore, it should be clear that the migration and extension of the concessions are different procedures and , consequently, they must be processed independently.

FIFTH. PUBLIC CONSULTATION.- That in compliance with Article 51 of the Law, under the principles of transparency and citizen participation, the Institute carried out the public consultation of merit from June 20 to August 12, said consultation yielded 13 (thirteen) responses received from 12 (twelve) participants, of which 7 (seven) correspond to natural persons and 5 (five) to moral persons, which were assessed and, where appropriate, strengthened these guidelines. In particular, various definitions were modified and adjusted as a result of these participations and adjustments were made to the Preliminary Draft.

The comments received through the aforementioned public consultation were analyzed and, where appropriate, attended in order to consolidate the draft Guidelines, the responses to all the comments received are published on the Institute's Internet portal.

Based on the articles 28 paragraphs twenty-fourth section IV of the Political Constitution of the United Mexican States; 1, 2, 7, 15 fraction I, 17 fraction I, 54, 56 of the Federal Telecommunications and Broadcasting Law and the 13th Transitory Decree issuing the Federal Telecommunications and Broadcasting Law, and the Law of the System Broadcasting Public of the Mexican State ; and various provisions on telecommunications and broadcasting are amended, added and repealed , and 4, section I, 6, section I, of the Organic Statute of the Federal Institute of Telecommunications, the Plenum of the Institute resolves to issue the following:

AGREEMENT

FIRST. The Guidelines are approved and issued by means of which the Federal Institute of Telecommunications establishes the criteria for the change of frequencies of Sonora Broadcasting stations that operate in the Modulated Frequency Modulated Amplitude Band, which are annexed to this Agreement as an Annex .

SECOND. Publish the Guidelines by which the Federal Institute of Telecommunications establishes the criteria for the change of frequencies of Sonora Broadcasting stations that operate in the Modulated Frequency Modulated Amplitude Band in the Official Gazette of the Federation and in the Internet portal of the Institute .

Commissioner President, Gabriel Saldivar Oswaldo Contreras .- Signature.- Commissioners: Ernesto Estrada González .- Signature.- Maria Elena Flores Estavillo .- Signature.- Adolfo Cuevas Teja .- Signature.- Adriana Sofia Labardini Inzunza .- Mario Germán Fromow Rangel .- Rubric.- Javier Juárez Mojica .- Rubric.

This Agreement was approved by the Plenary of the Federal Institute of Telecommunications in its XXXVII Ordinary Session held on November 4, 2016, generally by unanimous vote of Commissioners Gabriel Oswaldo Contreras Saldivar, Ernesto Estrada Gonzalez, Adriana Sofia Labardini Inzunza, María Elena Estavillo Flores, Mario Germán Fromow Rangel, Adolfo Cuevas Teja and Javier Juárez Mojica.

In particular, Commissioner Ernesto Estrada González stated that he departs from the exclusion of the requirement to demonstrate the economic capacity of the concessionaires.

Commissioner Adriana Sofía Labardini Inzunza expressed a vote against the fourth paragraph of paragraph b) of Article 6 of the Guidelines.

On the other hand, Commissioner María Elena Estavillo Flores expressed a vote against allowing more than one frequency to be assigned by the Economic Interest Group; and against the definition of the Economic Interest Group contained in the Guidelines.

Likewise, Commissioner Adolfo Cuevas Teja expressed a vote against Article 9 of the Guidelines, for making the use of the IBOC standard mandatory; as well as Article 10, as regards the part in which the obligation to simultaneously transmit the hybrid signal of the frequency-modulated band is indicated .

The foregoing, based on the twentieth paragraphs, fractions I and III; and twenty-first, of article 28 of the Political Constitution of the United Mexican States; Articles 7, 16 and 45 of the Federal Telecommunications and Broadcasting Law ; as well as in articles 1, 7, 8 and 12 of the Organic Statute of the Federal Institute of Telecommunications, by means of Agreement P / IFT / 041116/612.

The Commissioner Adriana Sofía Labardini Inzunza foreseeing her absence justified to the session, she gave her reasoned vote in writing, in terms of articles 45 third paragraph of the Federal Law of Telecommunications and Broadcasting, and 8 second paragraph of the Organic Statute of the Federal Institute of Telecommunications .

GUIDELINES THROUGH WHICH THE FEDERAL TELECOMMUNICATIONS INSTITUTE ESTABLISHES THE CRITERIA FOR THE CHANGE OF FREQUENCIES OF SOUND BROADCASTING STATIONS OPERATING IN THE MODULATED MODULATED AMPLITUDE AMPLITUDE BAND

CHAPTER I

General disposition

Article 1.- The purpose of these Guidelines is to establish the criteria, procedures and requirements to perform the migration to the Modulated Frequency Band of the largest number of Sonora Broadcasting stations operating in the Modulated Amplitude Band, which are applicable to the localities referred to in Annex 1.

Article 2.- For the purposes of these Guidelines, the following shall be understood as:

I. Modulated Frequency Band. Segment of the radio spectrum included from 88 to 108 MHz;

II. Modulated Amplitude Band. Segment of the radio spectrum included from 535 to 1705 kHz;

III. Sonora Radio Broadcasting Dealer. Holder of a concession to provide the service of Sound Broadcasting for commercial, public or social use, among these, the broadcasting permit holders are understood in terms of the Seventh Transitory Article of the "Decree by which the Federal Law of Telecommunications and Broadcasting, and the Law of the Public Broadcasting System of the Mexican State, and various provisions on telecommunications and broadcasting are amended, added and repealed " published in the Official Gazette of the Federation on July 14, 2014;

IV. Economic Interest Group. Set of subjects of law with similar commercial and financial interests that coordinate their activities to participate in the markets and economic activities , through the control or decisive influence, direct or indirect, that one of its members exercises over the others;

V. Institute. The Federal Institute of Telecommunications;

SAW. Instructions on Economic Competition . Document that has the purpose of orienting the Sonora Broadcasting Concessionaires interested in the information and documentation requirements that must be presented together with the Request for Change of Frequency, in order to issue the opinion on economic competition, same which is contained in Annex 2 of these Guidelines;

VII. Law. Federal Telecommunications and Broadcasting Law;

VIII. Guidelines Guidelines by means of which the Institute establishes the criteria, procedures and requirements for the change of frequencies of sound broadcasting stations operating in the Amplitude Band Modulated to the Modulated Frequency Band;

IX. Sonora Broadcasting. Propagation of electromagnetic waves of audio signals, making use, exploitation or exploitation of the frequency bands of the radioelectric spectrum, attributed by the Institute to such service, with which the population can receive directly and free of charge the signals of its issuer using the ideal devices for this, and

X. Frequency Change Request. Procedure by which the Sonora Broadcasting Concessionaire that operates in the Modulated Amplitude Band requests the change of frequency to operate in the Modulated Frequency Band.

The definitions included in this article can be used indistinctly in singular or plural.

In addition to these definitions, there will be those provided for in the Law and other applicable legal, regulatory and administrative provisions.

Chapter II

Frequency change requests

Article 3.- The Sonora Broadcasting Concessionaires operating in the Modulated Amplitude Band in the locations indicated in Annex 1 of these Guidelines, may apply to the Institute to change the frequency to operate a station in the Modulated Frequency Band. The foregoing, in accordance with the spectral availability shown for each location in Annex 1 and meeting the deadlines and requirements established in these Guidelines.

Article 4.- In order to be able to request the change of frequency referred to in article 3, the Sonora Broadcasting Concessionaires, who operate in the Modulated Amplitude Band, must submit to the Institute, for each station that they wish to migrate, a Request for Change of Frequency, addressed to the holder of the Concessions and Services Unit, and that meets the following requirements:

to. General Information of the Sonora Broadcasting Dealer.

(i) Name, reason or company name;

(ii) The legal accreditation of the personality with which the interested party and / or legal representative holds ;

(iii) Trade name or trademark, if applicable;

(iv) Call sign, frequency assigned, town / main population to be served, date of issue, validity of the Concession or Permit;

(v) Address to hear and receive notifications;

(vi) E-mail and telephone number of the interested party and / or legal representative, and

(vii) Tax Identification Card or Fiscal Registration Certificate.

b. Proof of payment of fees for the study and, if applicable, the authorization of the request to change frequency bands in terms of the Federal Law of Rights.

c. Documentation and information established in the Instruction on Economic Competition that is detailed in Annex 2 of the Guidelines.

Chapter III

Of the authorization of change of frequency

Article 5.- The Institute will analyze and resolve the Frequency Change Request within a period of 90 (ninety) business days, counted from the day following the filing thereof, verifying that continuity in the benefit is not affected. of services.

When the Frequency Change Request does not contain the data or does not comply with the applicable requirements , or it is necessary for the applicant to make clarifications, the Institute, within the first 30 (thirty) business days, counted from the Receipt of the Request for Change of Frequency, will prevent the applicant in writing and only once, so that within a period of 15 (fifteen) business days from the business day following the date on which the notification takes effect, correct the omission , corresponding clarification or defect .

In the event that the applicant does not vent the prevention carried out by the Institute within the period referred to in the previous paragraph, the procedure shall be rejected.

The term available to the Institute to resolve the Frequency Change Request will be suspended when the notification of the corresponding prevention takes effect and will resume on the next working day in which the applicant relieves the prevention.

Article 6.- The Institute will decide on the Frequency Change Request, considering the following criteria:

to. Preference will be given to concessions for public use by the Federal Executive.

b. The change of frequency will be granted to those interested who are not holders of concessions

to operate broadcasting stations in the Frequency Modulated Band that cover the locality of interest or that, belonging to Economic Interest Groups, these do not have stations in the Frequency Modulated Band that cover the locality of interest.

Once the change has been granted in accordance with the previous paragraph, and if there are still available frequencies , the frequency change will be granted to the concessionaires that only have one station in the Modulated Frequency Band in the locality or whose Economic Interest Groups , in If they belong to any, they only have one station in the Modulated Frequency Band in the locality.

If frequencies are still available in the Modulated Frequency Band, once the frequency changes have been granted in accordance with the previous paragraphs, in the allocation of said frequencies, preference will be given to concessionaires or Economic Interest Groups that have fewer stations in the Frequency Band Modulated in the locality.

Only one change of frequency per Economic Interest Group will be authorized, except in the cases of those locations where there are still available frequencies, and that there are still stations in the Modulated Amplitude Band. For these cases, the available frequencies will be granted giving preference to the Economic Interest Groups that have fewer stations in the Modulated Frequency Band.

Other things being equal, the applicant will be privileged if he does not have or has less concessions for the broadcast television service in the locality.

c. In those localities where there are applicants under equal conditions and that the change of frequencies can not be granted in accordance with the criteria described above, the Institute will submit the frequencies among those concessionaires under equal conditions.

The draw will take place at the facilities of the Institute, where a representative of each interested party may be present , on the date and time notified, and will consist of depositing ballots with the name of each interested party in a black box. , which will be assembled in front of the assistants, so that an official of the Institute, in the presence of a social witness who certifies the transparency of the process, obtains the ballot or of the concessionaires that will be subject to the change to the Frequency Band Modulated

The result of the draw will be notified to the winning participants and published on the Institute's website.

Those concessionaires that have a station in the Modulated Frequency Band in which they transmit the programming of a station in the Amplitude Modulated band simultaneously in the same locality of interest, will not be able to request the change of frequency to which the present Guidelines.

Chapter IV

Of the obligations

Article 7.- In the cases in which the Institute authorizes the change of frequency, the Sonora Broadcasting Concessionaire must deliver within a period of 10 (ten) business days, counted from the following day to the one in which its notification takes effect, the plain and simple acceptance, in writing, of the new conditions determined by the Institute, which include, in the case of concessions for commercial use, payment of the corresponding consideration, independently of what is established in these Guidelines. Once the new conditions have been accepted, the Sonora Broadcasting Concessionaire will have a period of 30 (thirty) business days to show proof of payment for the consideration given. for the Institute.

In the event that the applicant does not accept the conditions determined by the Institute or does not present proof of payment for the corresponding consideration, within the periods referred to in the previous paragraph, the authorization of the frequency change will be without effect and will complete the process.

The frequency that is available for the cases indicated in the previous paragraph, will be assigned to another concessionaire, as long as he / she has submitted his / her Application for Change of Frequency within the established term , in accordance with the criteria mentioned in the previous article.

Article 8.- The Sonora Broadcasting Concessionaire must present the following technical parameters to the Institute within a term not exceeding 60 (sixty) business days counted from the day following that in which the latter accepts the new conditions.

a) The Service Area Prediction Study (AS-FM);

b) In case of modification of the structural support or change of location of the antenna, the Location Plan (PU-FM), accompanied by the favorable opinion of the competent authority in aeronautical matters or, where appropriate, a copy of the brief by means of which requested the opinion of the aforementioned authority. The Institute will condition the approval of said opinion;

e) Multiple operation sketch, if applicable, and

d) Payment of the fees corresponding to the study of the documentation.

The Sonora Broadcasting Concessionaire must initiate operations on the frequency assigned to the Modulated Frequency Band within a period of no more than 180 (one hundred and eighty) calendar days, counted from the day following that on which the approval of the technical parameters has been notified.

For this purpose, the Institute must be notified of said situation within the 5 (five) calendar days following that event.

Article 9.- The Sonora Broadcasting Concessionaire, whose frequency change has been authorized by the Institute, must migrate to the Modulated Frequency Band using hybrid sound broadcasting equipment , in compliance with the Technical Provision IFT-002-2016 " Specifications and requirements for the installation and operation of sound broadcasting stations in modulated frequency in the band of 88 MHz to 108 MHz. " , as well as to the provisions of the " Agreement adopting the standard for digital terrestrial radio and The policy is established so that concessionaires and permit holders Broadcasting in the bands 535-1705 kHz and 88-108 MHz, carry out the transition to digital technology on a voluntary basis " , in whatever is applicable and does not contravene these Guidelines.

Article 10.- The Concessionaire of Radiodifusión Sonora will be obliged to transmit simultaneously the same content of programming in the Modulated Amplitude Band and in the hybrid signal of the Modulated Frequency Band , subject of the authorization, during one year, counted to from the date of presentation of the notice of the start of operations in the Modulated Frequency Band referred to in article 8 of these Guidelines.

Once the period of simultaneous transmission has elapsed, the frequency in the Modulated Amplitude Band shall be fully reverted to the State , and the concession service may only be provided through the Modulated Frequency Band . The foregoing, without the need for a pronouncement by this Institute, unless it determines and notifies, prior to the conclusion of the year of simultaneous transmission, that in the determined coverage , in accordance with the applicable technical provisions, of the amplitude station modulated, there are populations that only receive this signal, in which case the concessionaire must continue with the simultaneous transmission of the same content on both frequencies, until the Institute determines and notifies the concessionaire that the continuity of the Sonora Broadcasting service is duly guaranteed.

Article 11.- The authorization of change of frequency will not modify the term of validity of the concessions or permits granted originally. Likewise, the authorization of change of frequency does not extinguish the obligations contracted by the holder of the concession during the use, exploitation or exploitation of the frequency of AM object of migration.

Article 12.- The Institute, within the framework of the Annual Programs of Use and Use of Frequency Bands , will carry out the corresponding bidding or allocation processes for the granting of concessions that guarantee the continuity of service in the Modulated Amplitude Band. in the locations that are required.

Article 13.- Failure by the Concessionaire of Sonora Broadcasting to the obligations derived from the authorization of change of frequency, will be sanctioned according to the foreseen in the Law.

The falsity in the information or documentation delivered to the Institute to obtain the change of frequency will be sanctioned in terms of the applicable legislation.

TRANSITORIES

FIRST. These Guidelines will become effective at 30 (thirty) business days following its publication in the Official Gazette of the Federation.

SECOND. The Sonora Broadcasting Concessionaires interested must present their Request for Frequency Change in terms of article 4 of these Guidelines, within the period of 10 (ten) business days, counted from its entry into force.

THIRD. To determine the amount of the consideration referred to in article 7 of these Guidelines, the class of station, the population to be served, and the remaining term of the respective concession, among other elements, as well as the previous one, shall be considered. non-binding opinion of the Ministry of Finance and Public Credit.

APPENDIX 1

Spectral Availability in the Modulated Frequency Band.

* Frequencies awarded to Mexico under the Bilateral Agreement with the United States of America (USA). Once the technical parameters of the station have been received by the concessionaire, these will be valued for approval and notified to the Federal Communications Commission of the USA (FCC, for its acronym in English).

Operating conditions:

1. Class A stations

2. Maximum range of the station: 24 km.

3. Separation at 400 kHz between carriers.

APPENDIX 2

Instructions on Economic Competition for the Change of Frequencies of Sound Broadcasting Stations
operating in the Modulated Frequency Modulated Amplitude Band.

Persons interested in obtaining authorization to make the change to the Modulated Frequency Band of Sonora Broadcasting stations that currently operate in the Modulated Amplitude Band must present the information and documentation required in this Instruction.

This information and documentation must be attached to the Frequency Change Request submitted to the Institute, in accordance with Article 4, paragraph C, of these Guidelines.

The information and documentation required will be used to determine the following elements:

i) Identify the applicant concessionaires, in their Economic Interest Group dimension, and considering the persons with whom that group has commercial, organizational, economic or legal ties , involved in the change of frequencies of the Modulated Amplitude Band to the Modulated Frequency Band, and

ii) Evaluate the effects on the accumulation of radioelectric spectrum, in order to prevent concentration phenomena contrary to the public interest that affect the process of competition and free competition.

This Instruction is issued by the Institute in accordance with the provisions of articles 28, paragraphs eleventh, fifteenth and sixteenth of the Political Constitution of the United Mexican States; 1, 7, 15, fractions I and XXVIII, and 54 of the Federal Telecommunications and Broadcasting Law and 4 of the Guidelines, in relation to articles 58, 59, 61, 63 and 64 of the Federal Law of Economic Competition.

The information and documentation required in this Instruction will be subject to the following:

1) It must be submitted in writing, as an integral part of the Frequency Change Request, in the official office of parts of this Institute, as well as in electronic format through a portable storage device (USB or CD) in open-format applications of spreadsheets and / or word processors. The electronic files must keep full identity with the printed copies . In case of differences, the information presented in writing will be taken into account.

2) It must be submitted in Spanish. However, information and documentation may be presented in a language other than Spanish, without prejudice to the fact that the Institute may request the Economic Agents to perform the translation into Spanish, by an expert translator, of the aspects that it considers relevant. The translations made by an expert translator will be at the expense of the interested party. In case you do not perform the translation ordered by the Institute, the documents will be considered as not submitted.

3) The information will be classified and protected as public, confidential or reserved as evidenced by the interested parties.

Confidential information should be understood as that which, if disclosed, could cause damage or prejudice to the competitive position of the person who provided it, contain personal data whose dissemination requires their consent, may jeopardize their safety or when their disclosure is prohibited by law. It can not be considered as confidential information that is in public records or sources of public access.

4) In case the information and the required documentation already exist in the files of the Institute, it must indicate for what procedure, procedure, number of file and / or area was provided, as well as to refer the content of the same.

The doubts and clarifications concerning this Instructions will be addressed by the General Directorate of Concentrations and Concessions attached to the Economic Competence Unit of the Institute through the telephone numbers 5015-4047 and 5015-4274 or in person at the Institute's address ( Insurgentes Sur 1143, Col. Nochebuena, Delegación Benito Juárez, Mexico City, CP 03720) by appointment, which may be requested through the telephone number (55) 5015-4047 and / or emails manuel.hernandez@ift.org .mx and cesar.arias@ift.org.mx in working hours from Monday to Thursday from 9:00 a.m. to 6:30 p.m. and Friday from 9:00 a.m. to 3:00 p.m.

Information and documents required

1. PURPOSE OF THE APPLICATION

1.1. Describe the characteristics of the radio station in the Amplitude Modulated Band object of the application in the following table for its response:

Dealer / Permittee	Distinctive call and frequency	Location (Location)	Programmatic Profile	Main town to serve	Annual sales
					Year 2013	Year 2014	Year 2015

1.2. Briefly describe which are the main reasons why you are interested in making the change of frequency from the station operating in the Modulated Amplitude Band to the Modulated Frequency Band object of the Request.

2. INFORMATION OF THE APPLICANT

2.1. In case the applicant is a legal person, identify each of its partners, shareholders or associates, direct and indirect, until reaching a level of natural persons as indicated below. From here on, each of these partners, shareholders or associates will be called: " Related Shareholders " . Identify the persons who have ultimate control over the applicant, the reasons why he considers it and, where appropriate, the means through which he exercises or can exercise that control.

Present this information in Format 1.1 and Format 1.2, in the corresponding columns 1 to 6.

2.2. Identify the natural persons:

a) With which the applicant or each of the Related Shareholders have kinship, consanguinity, affinity or civil relations, up to the fourth degree, (1) and that

b) Participate, directly or indirectly, in companies, associations or companies that have a concession or permit that allows them to offer telecommunications services and / or sound broadcasting within the national territory, through:

· Stock or shareholding holdings,

· Organ and / or jobs, positions or commissions responsible for making decisions about the management, the definition of policies and objectives or management, the driving, the execution and others who transcend their substantive activities. This includes the members of the Boards of Directors, managers, managers, administrators or their equivalents.

From here on, each of the individuals who meet these two conditions will be called: " Related by Relationship " . For each of these Related you must identify:

1) Name,

2) RFC with homoclave,

3) Applicant or Related Shareholder with whom it is related,

4) Type of kinship, consanguinity, affinity or civil relationship,

5) Name or business name of the companies, associations or companies where it participates, directly or indirectly,

6) RFC with homoclave of the companies, associations or companies where it participates,

7) Share in the share capital, in percentage,

8) Employment, position or commission that performs.

Present this information in Format 2 in the corresponding columns 1 to 8.

2.3. Identify the companies, associations or companies within the national territory in which i) the applicant, ii) the Related Shareholders and / or iii) the Related by Kinship have direct or indirect shareholding or corporate shares, greater than 5% (five percent) ). From here on, each of these companies, associations or companies will be called: " Related by Participation. "

For each of the Related by Participation you must identify:

1) Name or company name,

2) RFC with homoclave,

3) Economic activities carried out,

4) Name or business name of all its partners, shareholders or associates,

5) RFC with homoclave of all its partners, shareholders or associates,

6) Number of shares, social shares or units of participation, as well as percentage of participation in the share capital, that each one of its partners, shareholders or associates, has in each of the Related by Participation, and

7) Number of shares with voting rights and percentage participation, with respect to all shares with voting rights, that each one of its partners, shareholders or associates, has in each of the Related by participation.

8) The rights that, directly or indirectly, that each of its partners, shareholders or associates have to appoint, appoint, veto or dismiss members that make up the decision-making body or bodies; and / or impose decisions in the general shareholders' meetings , of partners or equivalent bodies of each of the Related by Participation.

Present this information in Format 3 in the corresponding columns 1 to 8.

2.4. Identify the companies (other than those identified in their answers to questions 2.1 to 2.3 above) concession holders of concession titles for the operation and commercial exploitation of radio spectrum channels for the provision of telecommunications and / or broadcasting services within the national territory , in which i) the applicant, ii) the Related Shareholders, iii) the Related by Kinship, and / or iv) members of the decision-making bodies and / or managers, managers, administrators or their equivalents of the Related by Participation:

a) Participate in the decision-making bodies,

b) Be managers, managers, administrators or their equivalents,

c) Have shareholdings or direct and / or indirect corporate interests, greater than 5% (five percent)

From here on, each of the concession companies identified in accordance with the preceding subparagraphs will be called: " Related by Board Participation " . For each of the Related by Participation Directive must identify:

1) Name or company name,

2) RFC with homoclave,

3) Economic activities carried out

4) Participation of the applicant, or each of the Related Shareholders, Related by Kinship and / or directors / administrators of the Related Shareholders,

5) Name of the directors / administrators of the Related by Board Participation,

6) RFC with Homoclave of the directors / administrators of the Related by Directive Participation , and

7) Employment, position or commission that the applicant performs, or each of the Related Shareholders, Related by Kinship and / or directors / administrators of the Related by Participation in the Related by Board Participation

Present this information in Format 4 in the corresponding columns 1 to 7.

3. ECONOMIC INFORMATION

3.1. Identify each and every one of the concession titles or permits that directly or indirectly hold sound broadcasting, each of the following persons:

· The applicant,

· The Related Shareholders,

· Relatives by Kinship,

· The Related by Participation, and / or

· Related by Board Participation.

For each of the identified titles you must identify:

1) Name or business name of the concessionaire or permit holder,

2) RFC with homoclave of the concessionaire or permit holder,

3) Type of concession (commercial, social, permit or telecommunications),

4) Concession or permit (number in the Public Registry of Concessions),

5) Call sign,

6) Band,

7) Frequency,

8) Products and / or services related to radio broadcasting and telecommunications that offer,

9) Location where the associated station is located,

10) Obligatory Location (s) / Principal (s) to be served, and

11) Locations where it has coverage (other than those identified in section 10).

Present this information in Format 5 in the corresponding columns 1 to 11.

3.2. Identify the distinctive and frequency of open radio stations, by location, that are affiliated, directly or indirectly, to transmit content and / or advertising, to the following persons:

· The applicant,

· The Related Shareholders,

· The Related by Kinship, and

· The Related by Participation.

For the purpose of this Instruction, it will be understood that there are links or affiliation relationships when contracts, agreements or agreements, formal or informal, regardless of who signs them, allows or obliges a concessionaire (affiliate), through its concessioned station, to allocate from 15% (fifteen percent) (2) up to the totality of its programmatic content time to retransmit the signals of programming channels belonging to the company to which it is affiliated (Retransmission Time). Membership may consist of the following relationships:

a) The affiliate pays the affiliated company a monetary amount for the licensing of the retransmission of content. In these cases, generally, the affiliate is the one who inserts and charges for advertising within the programming.

b) The affiliating company pays the affiliate a monetary amount for the retransmission of content. In these cases, generally, the affiliate retransmits the signal completely and it is the company that affiliates who inserts and charges for advertising.

c) The affiliate retransmits the content of the affiliating company and each one inserts and charges for advertising a percentage of the total time available for these purposes.

The percentage of retransmission time is calculated as follows:

Where:

· TR (numerator): Total time per week (the total time is considered from Monday to Friday from 6:00 a.m. to 11:00 a.m.) that the affiliate retransmits content and / or advertising of the affiliating company , It can be in hours or minutes.

For the purposes of calculating the TR, the time it takes for the retransmission of the contents / programs belonging to the affiliating company, including the one corresponding to the advertising insertions, regardless of who commercializes the advertising time, should be counted .

· TT (denominator): Total time per week (considered full time Monday to Friday from 6:00 to 23:00) which has affiliated to transmit the content and / or advertising, can be in hours or minutes.

When calculating the percentage, the same unit of measure of time in the numerator and the denominator should be used, that is, if the numerator is counted in minutes, the denominator should also be counted in minutes.

From here on, the dealers of open radio stations, identified will be called " Related by Affiliation " . For each of the Affiliated Members you must identify:

1) Name or company name,

2) RFC with Homoclave,

3) Concession (Number in the Public Registry of Concessions),

4) Location and main (s) location (s) to be served,

5) Call sign,

6) Band,

7) Frequency,

8) Description of the relationship by affiliation,

9) Total income generated by the affiliation relationships during the last year, specifying the percentage that they represent with respect to the total income (annual amounts of two thousand and fifteen) of the affiliate,

10) Percentage of time represented by the advertising spaces that are the subject of contracts, agreements or agreements, formal or informal, of affiliation with respect to the total time of the advertising spaces issued by the affiliated stations (calculate the percentage as indicated above considering the time from Monday to Friday from 6:00 a.m. to 11:00 p.m.),

11) Percentage of time represented by the contents subject to the contracts, agreements or agreements, formal or informal, of affiliation with respect to the total time of the programming issued by the affiliated station (calculate the percentage as indicated above considering the time of Monday to Friday from 6:00 a.m. to 11:00 p.m.).

12) Copy or main terms of contracts, agreements or agreements, and

13) Company that affiliates.

Present this information in Format 6 in the corresponding columns 1 to 13.

3.3. For each of the concessions identified in paragraphs 3.1 and 3.2 that have the commercial exploitation of the Sonora Broadcasting service as authorized service and that have coverage in the same main location to be served by the station object of the request, identify based on the best information available:

3.3.1. The distinctive and frequency of the competing stations that have coverage of service in the locality;

3.3.2. The concessionaire and the Economic Interest Group to which such competing stations belong .

Formats

Format 1.1 Shareholders

Must be used to respond to Numeral 2.1 of the Instruction

Name or business name of the Related Shareholders	RFC with homoclave	Activities performed	Type of Participation	Share participation in the applicant	Share in percentage
Individual 1
...
Individual n
Moral Person 1
...
Moral Person n

Format 1.2. Related Shareholders who are Moral Persons

Must be used to respond to Numeral 2.1 of the Instructions

(one)	(two)	(3)	(4)	(5)	(6)
Name or business name of the Related Shareholders	Name or business name of its partners or shareholders	RFC with homoclave	Activities performed	Shareholding or shareholding	Share in percentage
Moral Person 1	Partner or shareholder 1
	...
	Partner or shareholder n
...	...
Moral Person n	Partner or shareholder 1
	...
	Partner or shareholder n

Format 2. Related by Kinship

Must be used to respond to Numeral 2.2 of the Instructions

(one)	(two)	(3)	(4)	(5)	(6)	(7)	(8)
Name of Relationship by Relationship	RFC with homoclave of the Related by Kinship	Name of the applicant or Related Shareholder with whom it is related	Type of kinship, consanguinity, affinity or civil relationship, 1	Society, association or company where the Relacionado por Parentesco participates directly or indirectly	RFC with homoclave of the society, association or company where the Relacionado por Parentesco participates	Share in the share capital (%) held by the Relacionado por Kinship in the company, association or company	Employment, position or commission performed by the Relacionado por Kinship in the company, association or company
Individual 1
...
Individual n

1 Identify the degree in terms of articles 292 to 300 of the Federal Civil Code.

Format 3. Related by Participation

Must be used to respond to Numeral 2.3 of the Instructions

Name or business name of the Related by Participation	RFC with Homoclave	Activities performed	Name or business name of the partners, shareholders or associates	RFC with Homoclave of partners, shareholders or associates	Number of shares, social shares or units of participation, as well as% of participation in the share capital	Number of shares with voting rights and percentage participation, with respect to all shares with the right to vote	The rights that, directly or indirectly, you have to appoint, appoint, veto or dismiss members that make up the decision-making body (s)
Moral person 1			Applicant, Related Shareholder or Related by Kinship
			Partner or shareholder 1 (third)
			...
			...
			Partner or shareholder n (third party)
Moral person n			Applicant or Related Shareholder or Related by Kinship
			Partner or shareholder 1 (third)
			...
			...
			Partner or shareholder n (third party)

Format 4. Related by Board Participation

Must be used to respond to Numeral 2.4 of the Instructions

(one)	(two)	(3)	(4)	(5)	(6)	(7)
Name or business name of the Related by Participation Directive	RFC with homoclave	Economic activities carried out	Shareholding held by the applicant, or each of the Related Shareholders, Related by Kinship or directors / managers of the Related by Participation in the Related by Board Participation	Name of the directors / administrators of the Related by Board Participation	RFC with homoclave of the directors / administrators of the Related by Board Participation	Employment, position or commission performed by the applicant, or each of the Related Shareholders, Related by Kinship or managers / administrators of the Related by Participation in the Related by Board Participation
Moral person 1
...
Moral person n

Format 5. Concessions and permits

It must be used to respond to Numeral 3.1 of the Instructions

Notes:

Name or business name of the concessionaire or permit holder	RFC with Homoclave	Type of Concession CC (Commercial Concession) CS (Social Concession) P (permission) T (Telecommunications Concession)	Number of concession or permit in the Public Registry of Concessions	Call sign / 1	Band	Frequency / 2	Products and services related to radio broadcasting and telecommunications that offer	Location where the associated station is located	Coverage area serving or main (s) location (s) to be served	Locations where it has coverage
Moral person 1
...
Moral person n

1. Refers to the frequency label of radio stations.

2. Refers to the frequency in which radio stations operate.

Format 6. Related by Membership

Must be used to respond to Numeral 3.2 of the Instructions

(one)

(two)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(eleven)

(12)

(13)

Name or Business Name of the Affiliated Member

RFC with homoclave

Concession number in the Public Registry of Concessions

Location and main (s) location (s) to be served.

Call sign / 1

Band

Frequency / 2

Description of the affiliation relationship

Total income generated by the affiliation relationship and percentage of the total income of the affiliate (annual amounts of two thousand fifteen)

Percentage of time represented by the advertising spaces that are the object of the affiliation contract with respect to the total time of the advertising spaces issued by the affiliated station (Monday to Friday from 6:00 a.m. to 11:00 p.m.)

Percentage of time that the contents subject to the affiliation contract represent with respect to the total time of the programming issued by the affiliated station (Monday to Friday from 6:00 a.m. to 11:00 p.m.)

Copy or main terms of contracts, agreements or agreements

Affiliating company / 3

Moral person 1

...

Moral person n

Notes:

1. Refers to the call sign of the radio stations.

2. Refers to the frequencies in which radio stations operate.

3. Refers to the company with which you have the affiliation contract.

(R.- 441223)

1 The provisions of articles 292 to 300 of the Federal Civil Code are taken as reference. Family members included in the fourth degree of kinship and therefore within the legal restriction in question, are the following. Kinship by consanguinity: parents, grandparents, great grandparents, great grandparents, children, grandchildren, great-grandchildren, great-grandchildren, brothers, half brothers, uncles and nephews, cousins, and uncles and nephews second carnal. Kinship by affinity: spouse, parents-in-law, stepparents, parents of in-laws, grandparents of in-laws, great-grandparents of in-laws, sons-in-law, stepchildren or inmates, brothers-in-law and step-siblings, carnal nephews of the spouse, uncles, cousins

brothers and second nephews of the spouse. Civil kinship : in accordance with the provisions of article 295 of the aforementioned Civil Code, civil kinship arises only in adoption, between adopters and adoptees, so there is no link of a legal nature with consanguineous or related to both the adopter as of the adopted.

2 This percentage is similar to that used by international references. In this regard, the Code of Federal Regulation of the United States of America in the Telecommunications Section (CRR § 73.3555), specifies that when a contract for the retransmission of content (programming or advertising) on radio or television is carried out, in the that the affiliating station acquires more than 15% (fifteen percent) of the weekly transmission time of the affiliated station and both stations belong to the same market, the parties that have a competent interest in the affiliating station will be subject to the limitations of property established in the Code, and in addition, the affiliated company must certify in writing that will maintain the financial, personnel and programming control of the station.

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Mexico: AM to FM Conversion - November 24, 2016 - Official Gazette (Decision)