Mexico's Supreme Court justices voted 6-4 Tuesday in favor of a resolution that bars federal judges from suspending the effects of rulings by the country's telecommunications regulator while they are being challenged by phone operators.

The decision favors the Federal Telecommunications Commission, or Cofetel, which sets interconnection rates when there is disagreement among operators on the amount one charges the other to complete calls on its network.

Cofetel recently ruled on several disputes between the country's biggest mobile-phone operator, America Movil SAB (AMX, AMX.MX) unit Telcel, and several smaller operators, including NII Holdings Inc. (NIHD) unit Nextel Mexico and units of broadcast and telecommunications company Grupo Televisa SAB (TV, TLEVISA.MX), setting the interconnection rate for completing calls on the mobile networks at 39 Mexican cents--just over three U.S. cents--per minute.

Under the ruling, Telcel would have to abide by the rate set by Cofetel while challenges go through the courts. Before, judges could order a suspension of the ruling until the matter was settled definitively.

Cofetel said the latest rate is the same as the one it recently set in a disagreement between fixed-line operator Alestra and Telcel.

Many of Mexico's smaller phone operators--both mobile and fixed-line companies--are disputing the mobile termination rate of 95 Mexican cents per minute agreed for this year among Telcel, America Movil's fixed-line unit Telefonos de Mexico SAB (TMX, TELMEX.MX), and the local unit of Spain's Telefonica SA (TEF).

America Movil Chief Executive Daniel Hajj said in a conference call with analysts earlier Tuesday that Telcel has been lowering interconnection rates every year for the last five or six years.

"We are not against reducing the interconnection rate. It's clear that the government wants to reduce the interconnection at a faster pace," Hajj said. But reducing rates at a faster pace could bring about a lack of investment in the sector, he added.

Telcel has around 70% of the country's mobile subscribers, with 65.7 million at the end of March. Smaller operators say the interconnection fees are higher than what Telcel charges its own customers for calls within the network, and prohibits them from offering competitive rates to their own users.

-By Anthony Harrup and David Luhnow, Dow Jones Newswires;

(5255) 5980-5176, anthony.harrup@dowjones.com
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