This matter involves a dispute between Tele Fácil, a facilities-based Mexican telecommunications company with headquarters in Mexico City, and the Government of the United Mexican States, with respect to an investment in the telecommunications industry in Mexico. Tele Fácil’s shareholders founded Tele Fácil in July 2009 and established the company under Mexican law in 2010. Tele Fácil applied for a concession that entitled the company to offer an array of telecommunications services and to compete in the relevant industry sectors in Mexico. Tele Fácil invested in telecommunication infrastructure, including a switching facility located in Mexico City. Tele Fácil alleged that Mexico’s Federal Institute of Telecommunications (IFT) “dramatically, unjustifiably, and illegally reversed its own rulings” with respect to an interconnection agreement dispute between Teléfonos de México, S.A.B de C.V., and Teléfonos del Noroeste (collectively Telmex) and Tele Fácil. Tele Fácil filed a request for arbitration in response to the IFT’s alleged illegal reversal in its ruling that caused Tele Fácil to face economic harm.

NERA was retained by Tele Fácil México, S.A. de C.V., to provide expert testimony examining the economic damages. NERA was asked to create an economic damages model to estimate the amount of money necessary to return Tele Fácil to the financial position it would have experienced absent the IFT’s alleged illegal reversal of its ruling.  

NERA’s analysis of the pertinent facts in this matter and the calculation of damages revealed that Tele Fácil suffered economic harm of USD $360 million in three of its four anticipated lines of business as a result of the IFT’s alleged illegal reversal in its ruling. Managing Director Dr. Christian Dippon provided oral testimony in spring 2019. The tribunal ruled in favor of the respondent on legal grounds.