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Cofeco blocks Televisa’s mobile plans
03 February 2012
Mexican antitrust regulator Cofeco rejects Televisa’s plans to acquire 50% stake in mobile operator Iusacell
Read more:
Cofeco
Mexico
Televisa
Iusacell
América Móvil
Telcel
Grupo Televisa’s $1.6 billion plan to enter the Mexican mobile phone sector has been rejected by Mexican antitrust authority Cofeco. The regulator voted 3-2 against the media firm’s plans to convert the debt held in mobile operator Grupo Iusacell into a 50% stake.
According to Bloomberg, Televisa stated that this move dampens its attempts to drag down prices in the mobile sector, adding that it would ask the agency to reconsider its decision. The company has 30 business days to ask a review of the ruling, according to Mexican regulations, after which the agency must reply to the request within 60 days.
Televisa said: “This decision taken by Cofeco damages the potential for competition in a key sector for Mexico’s development. The lack of competition has deeply affected the degree of adoption of these services and the development of Mexico’s telecommunications infrastructure.”
Meanwhile Iusacell said that the regulatory ruling was based on “suspicions and hypothetical assumptions”, Bloomberg reports. The operator had previously alleged that Cofeco’s president favoured América Móvil-owned Telcel’s interest while voting on approval for the merger. GTB
Further reading from Global Telecoms Business:
Iusacell owner wants rival licences cancelled 17 Oct 2011
Nextel and Televisa get Mexican licences 04 Oct 2010
Iusacell to offer fast internet in Mexico 13 Sep 2010
Televisa only fibre bidder in Mexico 18 May 2010