 MEXICO | TELECOMUNICATIONS |
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| Green Light for Televisa-Iusacell Alliance |
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The Federal Competition Commission (CFC) in Mexico approved the alliance between Iusacell (owned by TV Azteca) and Televisa, with the condition that neither of them does anything to prevent a third network from being licensed.
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Emilio Azcárraga Jean, president and manager of Televisa.
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Following several months of analysis and an array of debates on the matter, this Thursday the Alliance between Iusacell and Televisa was approved, redefining the telecommunications industry in Mexico.
After turning down that same alliance, the Federal Competition Commission (CFC) in Mexico ruled in favor of the request.
With the approval in check, Televisa -the largest TV broadcaster in Mexico- meets its goal to enter the mobile industry, while joining Iusacell, owned by Salinas Group, also owner of Azteca, and the second largest network in the country.
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The alliance also includes Televisa acquiring a 50% stake in Iusacell, which it must pay US$ 1.5 billion.
The CFC agreed to allow the alliance to take place to promote more competition in the industry which is currently ruled by Telcel (Carlos Silm's company).
Still, the approval has several terms and conditions, such as neither of the companies preventing a third network from being licensed.
In addition, if in 24-months time a new network isn't licensed, the alliance between Televisa and Iusacell will be terminated.
There are other conditions in regard to advertising, separate content sales, and others. "With these conditions, we prevent the risks for broadcast and pay TV competition, and promote more competition in mobile telephony in benefit of the subscribers," said the CFC.
If the conditions aren't respected, in addition to terminating the alliance, the companies would be fined for up to 10% of their annual income.
The CFC's announcement came a day after the Iusacell stated it signed a deal with Telefónica Movistar to share towers, ducts and networks to avoid doubling the expense in infrastructure, allowing them to devote their US$ 1.5 billion budgets to other things.
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