December 6, 2013
Giant Mexican telco America Movil and broadcaster Televisa, the two companies likely to be most affected by the country’s telecoms reform, said on Thursday the regulator has told them it was determining whether they are dominant players in the sector.
The notifications are the first step in a process mandated by a telecoms reform passed by Mexico’s Congress earlier this year that gives the new Federal Telecommunications Institute (IFT) powers to clamp down on dominant players and spur competition.
November 25, 2013
The Economist, 11/23/2013
When Enrique Peña Nieto spoke at an Economist conference this month, he was reminded that this newspaper had cautiously endorsed him for president last year as the “least bad” of the candidates. The audience laughed nervously; easy-going in person, the president is rarely exposed to such public leg-pulling. But though his first year in office has had downs, it has had more ups. If he can bring home the raft of reforms that he has launched, he could transform Mexico.
November 25, 2013
Legislation to implement a major overhaul of Mexico’s telecommunications industry will not be approved until early next year, pushing back a deadline set for December, two senior lawmakers said on Saturday.
The secondary laws set out the fine print for a telecoms reform promulgated in June by President Enrique Pena Nieto which gives regulators sweeping powers to rein in billionaire Carlos Slim’s telecoms giant America Movil and dominant broadcaster Televisa.
November 13, 2013
Telefonica SA has approached potential acquisition targets and partners in Mexico, where it’s seeking to challenge billionaire Carlos Slim’s dominance, according to three people familiar with the matter.
Spain’s biggest telecommunications group has held discussions with companies including Grupo Iusacell SA, a smaller rival co-owned by Ricardo Salinas and pay-TV provider Grupo Televisa SAB, said the people, asking not to be named because the deliberations are private. Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA are working with Madrid-based Telefonica, said another person familiar with the matter.
November 12, 2013
Mexico’s new telecommunications watchdog said on Monday it may identify this month which companies dominate the local market, likely paving the way for tougher regulation against telecom company America Movil and broadcaster Televisa.
Gabriel Contreras, president of the Federal Telecommunications Institute (IFT), said the watchdog would in the near future inform the companies it had determined to be dominant, adding that it could be as soon as this month.
November 8, 2013
The crossover success of at least one Mexican film, along with plans in place for another local hit to make its way north, have Mexico’s bizzers thinking big, and targeting the U.S. as fertile ground for distribution. Mexico’s box office is typically dominated by movies from Hollywood. In 2012, the country’s total B.O. receipts hit $841 million, with two local hits contributing a dismal $7.8 million. In 2011, the biggest local film was the animated “Top Cat,” with $8 million, while in 2010, box office for the top two local hits peaked at $16.6 million.
This year, however, things have changed a bit. Gaz Alazraki’s “We Are the Nobles,” distribbed by Warner Bros., has grossed $26.6 million at the local box office, while Eugenio Derbez’s “Instructions Not Included” has taken in $44.9 million through Oct. 27. More important, “Instructions” has also been a hit in the U.S. for Lionsgate-Televisa joint venture Pantelion Films, grossing $44.0 million through Oct. 30 in the States — making it the second-highest-grossing foreign-language film of all time.
October 11, 2013
Mexico’s new telecoms reform should be able to reduce tycoon Carlos Slim’s share of the local mobile phone market to less than 50 percent in the next five years, an influential opposition lawmaker said on Wednesday. The law, broadly backed across the political spectrum in Mexico, targets Slim’s giant phone company America Movil and rival Emilio Azcarraga’s broadcaster Televisa, powerful symbols of the power wielded by a select group of families over Latin America’s second biggest economy.
August 1, 2013
Grupo Televisa SAB agreed to a $745 million transaction that would give it control of Mexico’s Cablecom, strengthening its grip on the growing pay-TV market.
Televisa is acquiring 7 billion pesos ($549 million) in debt that’s convertible to a 95 percent stake in Tenedora Ares SAPI, which owns 51 percent of Cablecom, according to a filing today. Ares also has an option to acquire the rest of Cablecom. As part of the deal, Mexico City-based Televisa said it also bought about 2.5 billion pesos in Ares debt.
June 27, 2013
The Atlantic, 6/25/2013
Grupo Televisa, the world’s largest Spanish-language media company, is famous for its logo, a gold-colored eye gazing at the world through a television screen. According to The Guardian, this logo “captures the company’s success at controlling and dominating what Mexicans watch”. In a country where newspaper readership is tiny and the reach of the Internet and cable is still largely limited to the middle classes, Televisa — and its rival TV Azteca — exert a powerful influence over national politics. Through its scores of stations and repeater towers, the former accounts for roughly two-thirds of the nation’s free-to-air television; most of the rest belong to Azteca.
Accused for decades of politically slanted news coverage, Televisa represents another rarely spoken fact: modern Mexico has never functioned without corruption, and its current system would either collapse or change beyond recognition if it tried to do so. Just before the 2012 elections, Mexican news magazine Proceso and The Guardian released evidence of a series of shady deals struck between Televisa and the nation’s powerful Institutional Revolutionary Party (the “PRI”).
June 11, 2013
Mexico’s president signed into law a monopoly-busting telecommunications law Monday that’s expected to drive down telephone prices for consumers and cost the country’s richest man billions of dollars. Carlos Slim, the tycoon whose America Movil SAB controls 70 percent of Mexico’s cellphone business and 80 percent of the country’s landlines, has seen his net worth plummet $5 billion since March, when the law was proposed, as investors sold off the company’s stock for fear of the law’s impact. The slump dropped Slim to second, behind Microsoft founder Bill Gates, in the competition to be the world’s richest man. The law’s implementation is likely to further undercut his business empire.
President Enrique Pena Nieto took less than three months to push the proposal through Congress, a sign of his race to obtain major changes before a broad pact of Mexico’s major political parties unravels. Moments before signing the measure into law, Pena Nieto said it would strengthen Mexican companies and favor consumers with lower prices. That, in turn, will attract foreign investment and speed economic growth, he said.