Spanish incumbent Telefonica is reportedly reviewing a number of partnership options with Mexican broadcaster Televisa. These could include setting up a new telco in Mexico for the provision of quad-play services, creating an MVNO on Telefonica’s…
Spanish incumbent Telefonica is reportedly reviewing a number of partnership options with Mexican broadcaster Televisa.
These could include setting up a new telco in Mexico for the provision of quad-play services, creating an MVNO on Telefonica’s Mexican network, or a tie-up with Televisa’s cable companies, Reuters reported citing a person with knowledge of the matter.
The two companies have reportedly not held formal discussions yet, as Telefonica is also assessing a potential takeover of number three carrier Iusacell, which was recently bought out by Mexican billionaire Ricardo Salinas’ Grupo Salinas.
Earlier this year, a number of press reports hinted at a possible merger between Iusacell and Telefonica, which is Mexico’s second-largest mobile operator. At the end of July, the Spanish incumbent confirmed it was negotiating a deal in Mexico, without revealing the name of the company.
But in early September, Ricardo Salinas agreed to acquire the remaining 50% stake in Iusacell it did not already own from Televisa for US$717m.
At the time, however, the Mexican billionaire said he was in the process of selecting a “world-class strategic partner” to boost Iusacell’s growth and expand its product offering.
Softbank looking at Iusacell
Meanwhile, Japanese Softbank is rumoured to be interested in investing in Iusacell too, among other potential bidders.
The Tokyo-based carrier, which already has a roaming agreement with Iusacell, is in advanced stages of reviewing the operator’s assets, according to a Bloomberg report citing people with knowledge of the matter.
Softbank, which recently abandoned plans to merge its US operator Sprint with rival T-Mobile US, has been linked to several potential targets since, including UK-based Vodafone and America Movil’s Mexican assets.
Mexico’s telecoms sector is currently experiencing a shake-up. Earlier this year, president Enrique Pena Nieto pushed forward new legislation aimed at promoting a more competitive environment by reducing America Movil’s dominant position in the domestic market.
In order to comply with the regulatory reforms, Carlos Slim’s America Movil, which holds a 70% share of the mobile market and 60% of the fixed line segment, is looking to offload US$17.5bn in assets. Besides Softbank, potential suitors also reportedly include AT&T, Bell Canada and China Mobile.
Telefonica, Televisa, Softbank did not reply to a request for comment. A spokesman for Grupo Salinas declined to comment on the matter.
