Following a review of the Mexican telecoms and media sectors, the country’s watchdog, Instituto Federal de Telecomunicaciones (IFT), has identified the dominant players, without naming them, and is taking measures to preserve competition.
Televisa,…
Following a review of the Mexican telecoms and media sectors, the country’s watchdog, Instituto Federal de Telecomunicaciones (IFT), has identified the dominant players, without naming them, and is taking measures to preserve competition.
Televisa, which has roughly 60% of the pay-TV market and is Mexico’s largest satellite-TV and cable operator, has already been notified and detailed in a statement today the “several substantial and restrictive measures” it must comply with.
The media group must share its broadcasting infrastructure with third-parties in an attempt to enable new broadcasters to enter the market. Televisa is also banned from having a stake in a dominant local telco and cannot buy certain exclusive content.
Antitrust measures are also expected to affect Carlos Slim’s America Movil (AMX), which controls about 80% of the fixed-line and 70% of the mobile market.
Since last year, the new beefed-up regulator has the power to enforce asymmetrical regulations on dominant operators and broadcasters and can go as far as revoking licences and forcing asset sales if companies do not comply with its pro-competition measures.
Reports suggested in February that the IFT would aim to use an ‘airtight’ formula to assert a company’s dominance in the telecoms or media industries. Rather than relying solely on numbers of subscribers, elements such infrastructure and investments would also be taken into account.
By having a number of indicators as opposed to just one, the government reportedly hopes to make it impossible for the historically litigious market leaders to find technicalities to circumvent the regulations.
