The Communications and Transportation Ministry of Mexico recently awarded a 20-year lease for two strands of optical fiber lines to a consortium led by Grupo Televisa S.A. (TV). The Mexican government conducted an auction for fiber-optic lines owned by the state-owned power company, Comision Federal de Electricidad to boost competition in the country’s telecom market.
Mexican telecom market is highly monopolized. While America Movil SAB (AMX) controls 71% of the wireless market, Telefonos de Mexico SAB (TMX) controls 82% of the country’s fixed-line network. Both of these companies are owned by billionaire Mr. Carlos Slim.
Televisa, Telefonica S.A. (TEF), and Megacable Holdings SAB formed a consortium and submitted $69.3 million for this bid. The consortium at present won a 20-year lease for 19,457 kilometers of unused fiber-optic lines. However, the telecom network has to be installed within 18-months time. Televisa announced that the consortium will further invest more than $100 million to establish the network.
Televisa, the largest media company in the Spanish-speaking world, is also entering into lucrative wireless communications market in Mexico. Televisa signed an agreement with NII Holdings Inc. (NIHD) to acquire 30% stake of the latter’s wireless arm in Mexico, Nextel de Mexico for $1.44 billion. The two companies jointly submitted bids for blocks of spectrum in the 1.7GHz and 1.9 GHz bands. Nextel is currently working on building its 3G wireless networks.
Televisa hopes to create an innovative converged communication platform by adding Nextel’s wireless services to its existing portfolio of pay TV services. This will enable Televisa to offer quadruple play converge services consisting of mobile, TV, broadband data, and fixed line voice.
Mexican telecom market is highly monopolized. While America Movil SAB (AMX) controls 71% of the wireless market, Telefonos de Mexico SAB (TMX) controls 82% of the country’s fixed-line network. Both of these companies are owned by billionaire Mr. Carlos Slim.
Televisa, Telefonica S.A. (TEF), and Megacable Holdings SAB formed a consortium and submitted $69.3 million for this bid. The consortium at present won a 20-year lease for 19,457 kilometers of unused fiber-optic lines. However, the telecom network has to be installed within 18-months time. Televisa announced that the consortium will further invest more than $100 million to establish the network.
Televisa, the largest media company in the Spanish-speaking world, is also entering into lucrative wireless communications market in Mexico. Televisa signed an agreement with NII Holdings Inc. (NIHD) to acquire 30% stake of the latter’s wireless arm in Mexico, Nextel de Mexico for $1.44 billion. The two companies jointly submitted bids for blocks of spectrum in the 1.7GHz and 1.9 GHz bands. Nextel is currently working on building its 3G wireless networks.
Televisa hopes to create an innovative converged communication platform by adding Nextel’s wireless services to its existing portfolio of pay TV services. This will enable Televisa to offer quadruple play converge services consisting of mobile, TV, broadband data, and fixed line voice.
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