Grupo Televisa S.A. (TV), the largest media company in the Spanish-speaking world, entered into the lucrative wireless communications market in Mexico. Recently Mexico’s wireless regulator Comision Federal de Telecomunicaciones (CoFeTel) declared that Televisa together with its partner Nextel de Mexico has won one block of frequency ranging from 1850 MHz – 1990 MHz. Televisa’s bid size was around $3.71 million.

In last February, Televisa signed an agreement with NII Holdings Inc. (NIHD) to acquire 30% stake of the latter’s wireless arm in Mexico, Nextel. Antitrust regulators of Mexico have already cleared the application of Televisa to partially acquire Nextel’s operations.

Nextel is currently working on building its nationwide 3G wireless networks. Televisa hopes to create an innovative converged communication platform by adding Nextel’s wireless and broadband services to its existing portfolio of pay TV services that offers market leading content and multiple distribution channels. This new joint venture will offer converged quadruple play services consisting of Wireless, TV, Broadband Data, and Fixed line voice.

In the previous month, the Communications and Transportation Ministry of Mexico awarded a 20-year lease for two strands of 19,457 Kilometers optical fiber lines to a consortium led by Televisa. The consortium formed by Televisa, Telefonica S.A. (TEF), and Megacable Holdings SAB submitted $69.3 million for this bid. Televisa declared that the consortium will further invest more than $100 million to establish the telecom network.
 
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. Recent move by the Mexican Government to conduct auctions for both fiber optic strands and wireless spectrums are aimed to boost competition in the country’s telecom market.

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