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Mexico City, January 14, 1999 -- On December 1, 1998, the Federal Telecommunications Commission (Cofetel) announced new rules for network connections, notably a proposal for implementing the "Calling Party Pays" plan in this country.
The Pegaso company welcomes this measure in light of the benefits it will represent for both mobile phone users as well as businesses working within the sector.

"Calling Party Pays" is a billing method that applies solely to connections involving at least one mobile phone. As its name implies, it means that a party originating a call will pay for the airtime.

To ensure that users are informed, such calls will require entering an access prefix when dialing the number, similar to long distance calls. In this way, users be fully aware that an additional charge will apply to the call.

The new billing option represents greater choice for users, since the current system will continue to operate. An individual will be able to choose whether to continue using the current set up, paying for incoming calls, or whether to take advantage of the benefits available with the "Calling Party Pays" method.

It is highly notable that in countries such as Peru, Colombia, Venezuela and Uruguay, inception of the "Calling Party Pays" feature doubled and in some cases tripled the customer base in less than a year, while total usage increased more than 50 percent during the same period.

It bears keeping in mind that an essential element in promoting the domestic economy requires an increase in the ratio of phones to population. By promoting the use of wireless phones, "Calling Party Pays" billing has been shown to be a significant aid in achieving this increase, facilitating the installation of phone service in remote and other areas that to date are not well served.
Included among the benefits this billing method offers are:

1. Users can receive any number of calls on their mobile phones, and remain fully in control of what they spend, since they pay only for calls they originate. Apart from encouraging phone use, this method allows more people to constantly remain in touch without increasing their costs, as they can decide when and how much they will spend for the service.

2. Furthermore, "Calling Party Pays" aims at encouraging the increased penetration of mobile phone service within distinct population sectors, essentially benefiting more remote communities.

3. International experience shows that implementation of this billing method has increased traffic between networks, making them more efficient. It has also increased demand for local mobile phone service, allowing licensed providers to offer more attractive rate schedules to the public.

4. The "Calling Party Pays" concept will increase the ratio of phones to population in Mexico by making wireless communication more accessible, since its cost will automatically go down. A greater ratio of phones to population serves to stimulate the domestic economy, resulting in a higher standard of living for thousands of Mexicans.

5. Lastly, it should be noted that wireline phone operators will also benefit from the system as a result of an increase in calls to and from the wireless networks, as well as from the increased per-minute revenues they will receive from this traffic.

For the above reasons and more, and reiterating its commitment to working to guarantee an increasing growth rate and leadership role for Mexico, Pegaso supports the inception of the "Calling Party Pays" option.