Televisa’s plea to acquire stake in Iusacell faces rejection (Mexico)
Mexican multimedia conglomerate Televisa’s attempt to acquire a 50 percent stake in mobile operator Iusacell has reportedly been rejected by the Mexican regulatory authority. The deal has been under review for nine months and estimated to be worth US$ 1.6 billion.
According to reports, the decline by the regulatory authority CFC, could have negative consequences for both companies. Sources claim that this move was important for Televisa as it provided the media company an entry into the wireless market. Further, the money would provide Iusacell with the much required financial support to maintain its position in the industry as well as increase its business.
As per sources, the companies can appeal to the agency to review its decision.
Mexico’s Telecom Market expands with the increasing competition
If reports are to be believed, Mexico’s telecom market will expand at a CAGR of 7.9% over the next five years to generate US$34.9 billion in 2015, owing to radio-access migration from 2.5G to 3G platforms, spectrum auction winners, and the entry of a new player increasing competition.
According to Jose Manuel Mercado, Senior Analyst at Pyramid, the need for better coverage, affordable prices and state-of-the-art communications has lead the federal government to promote competition in the mobile segment with much more intensity – two spectrum auctions took place in 2010, and the most important outcome is the entry of new player Televisa-Nextel. In 2011 Televisa-Nextel will start to offer services to the mass market, and Telcel and Telefonica will expand their 3G services thanks to their new capacities. The next step toward more competition will be related to the pay-TV market and its inclusion of Telmex.
Jose explained that, market expects mobile services revenue to account for 67% of the total market by 2015; this will be driven by an increase in the subscriber base of roughly 41 million net adds between 2009 and 2015, increased by intensified competition between Movistar and Telcel, which is helping to bring down the prices of services and to boost mobile data adoption. The pay-TV market is becoming more dynamic as a result of aggressive strategies and the entry of new players. Megacable will be the second MVNO player and with the spectrum acquired by Televisa, the pay-TV segment will lead the technological change.
Iusacell becomes second operator to bid for dark fibre (Mexico)
www.WirelessFederation.com/news: Mexican mobile network operator Iusacell has expressed an official interest in the government’s upcoming auction for access to two of state-owned power firm Comision Federal de Electridad’s (CFE’s) dark fibre strands. This has made the company, the second mobile operator to announce an official interest in the auction.
Earlier, it was reported that an auction will be conducted by Secretario de Comunicaciones y Transportes (SCT) on behalf of CFE, and the fibre links, which span some 21,208km, have been split into three sections: Pacific, Centre and Gulf.
Till April 5 which was the deadline, only one other bid was received by the SCT, the country’s telecoms regulator. The interested bid came as a joint offer by local broadcast giant Televisa, Telefonica of Spain and cableco Megacable.
On June 9, the licenses granting access to the fibre strand with a validity of 20-year period will be awarded to the telcos.
Televisa, Telefonica and Megacable to bed for dark fibre spectrum together (Mexico)
www.WirelessFederation.com/news: In order to bid for dark fibre spectrum in Mexico, Televisa, Telefonica and Megacable have entered in to a joint venture. The unused parts of state power company CFE’s fibre-optic network would be auctioned by the Mexican Ministry of Communications and Transport (SCT).
Hereby, the dark fibre network of CFE is opened and it will lease unused parts of its fibre-optic network to alternative operators.
Announcements of the tender winners will be made on June 9. Televisa, Telefonica and Megacable are expected to have equal stakes in the consortium.
Nextel Mexico’s 30% stake bought by Televisa
www.WirelessFederation.com/news: Stakes in local unit of NII Holdings’, the mobile operator Nextel Mexico, will be bought by pay-TV provider and media group Televisa at a price of USD 1.44 billion cash for an initial 30 percent equity stake in Nextel Mexico. 70 percent stake in Nextel Mexico will be maintained by NII along with the management.
An additional 7.5 percent stake in Nextel Mexico can also be acquired by Televisa from the third or fourth anniversary of the completion of the initial transaction.
The services will be cross sold to each other customers base. The companies have also planned to use the Televisa media and distribution channels to market Nextel services and work on bundling services and developing a quadruple-play offering.
Nextel’s stake to be acquired by Televisa (Mexico)
www.WirelessFederation.com/news: CFC’s approval has been seeked by Mexican media group Televisa to acquire a stake in the local unit of mobile operator NII Holdings. Both the companies have notified the Federal Competition Commission regarding their intention to undertake this acquisition.
The CFC has 30 days to approve or deny the acquisition.
There are 2.9 million customers and 3.6 percent mobile market share of NII Holdings operating in Latin America under the Nextel brand name, in Mexico at the end of September 2009.
Vivendi, Televisa join hand for license bid by Cofetel
www.WirelessFederation.com/news: A joint bid has been planned by Mexican media group Televisa and French telecommunications and entertainment group Vivendi for a mobile license in Mexico. The partnership agreement is expected to be reached by February 15.
Deployment of mobile network with nationwide coverage is intended by the two parties with an investment of over USD 3 million on the project in 2010. More than 90 companies have acquired the bid documents for the mobile license tender launched by Cofetel on 6 January.
Additional 120 MHz spectrum in the 1.7 and 1.9 GHz frequency bands has been offered as a part of the tender by Mexican telecoms regulator Cofetel. Cofetel’s authorization will allow the operators to submit their bids on 25 May and the result is expected to be released by June.
Televisa plans to enter Mexico mobile market
www.WirelessFederation.com/news: Televisa the Mexican media group, intends to launch its mobile phone services in the local market, as it plans to bid for the fibre optic network licence and wireless spectrum. Cofetel, the Mexican regulator, will soon launch mobile licence tenders, aiming to boost competition in the country. Televisa further plans to provide mobile services through its cable companies, Cablevision, Cablemas and Cablevision Monterrey, which recently teamed with Guadalajara-based Megacable.
