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Televisa-Iusacell JV ruling may change
09 February 2012
Mexican competition regulator may change its mind on Televisa-Iusacell deal for TV advertising concessions
Mexico’s Federal Competition Commission said that while Televisa’s planned $1.6 billion bid to acquire 50% of Iusacell has been rejected, it could revise the decision if the two parties addressed possible consequences in the television advertising market, reported Dow Jones.
Televisa dominates the broadcast television market along with TV Azteca, which is controlled by Iusacell’s owner Ricardo Salinas Pliego. CFC has stated that the planned JV carries serious competition risks for broadcast television.
The two companies have already indicated plans to appeal the decision, which is being evaluated. According to Dow Jones, a Televisa spokesman said the firm would consider “viable options”. The person said that the tie-up with Iusacell was intended at promoting competition and helping reduce telephony prices, adding that the company is obviously “in favour of competition in all markets”.
The CFC stated that efforts to limit competition in the television market would raise advertising costs, eventually affecting consumers. However, the agency believes investment into Iusacell would be positive for competition in mobile phones, Dow Jones reported. GTB
Further reading from Global Telecoms Business:
Cofeco blocks Televisa's mobile plans 03 Feb 2012
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