Grupo Televisa S.A. (TV) has decided to explore the wireless communications market. Televisa is the largest media company in Mexico as well as in the Spanish-speaking world. Its cable TV subsidiary Cablevision will start providing mobile phone services in Mexico from the first quarter of 2010. Televisa has already started its own telecom business. On May 9, 2007, the Mexican Ministry of Communication and Transportation granted Cablevision permission to offer fixed telephony services through its network. As of now, Cablevision offers digital cable television services, broadband Internet connection, high-definition television services and video-on-demand products.
Televisa is a dominant force in the Mexican media business. The company is almost a monopoly with around 70% of the Mexican open television market. Televisa has a stable customer base in many different areas, including television broadcasting, pay television network, publishing, and radio. Cablevision will try to leverage this long-established customer base to explore its new wireless services venture. Furthermore, Televisa has been expanding to more stable and developed markets in the U.S. and in Europe.
The Mexican wireless services market is highly competitive. America Movil S.A.B. de C.V. (AMX) is the dominant player in this market commanding approximately 70% share. Telefonica S.A. (TEF) is the other major competitor. Mexican cable operator Megacable also decided to enter this market in early 2010. Cablevision already provides data and long-distance services solutions to carriers and other telecommunications service providers through its fiber-optic network in Mexico and the U.S.
Read the full analyst report on “TV”
Read the full analyst report on “AMX”
Read the full analyst report on “TEF”
Zacks Investment Research
