América Móvil fails to enter the pay television market in Mexico

22nd of December, 2024

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América Móvil fails to enter the pay television market in Mexico

26 enero, 2022

English

América Móvil did not achieve its goal of entering the pay television market in Mexico this year, as it had expressly hoped the day before.

The Federal Institute of Telecommunications (IFT) rejected this Wednesday the project related to the incursion of Claro TV, a subsidiary of América Móvil, into the pay TV market.

The incursion of América Móvil would entail greater competition for AT&T Inc (T.N) and Grupo Televisa (concentrates 64% of the market).

To advance its objectives, América Móvil announced on Tuesday that it will invest 8,000 million pesos if it secures the pay television concession in Mexico.

Carlos Slim Domit, president of the company’s board of directors, stated, «We will invest 8,000 million pesos initially, in addition to the committed investment from Telcel and Telmex.»

At present, América Móvil covers 70% of the mobile internet services market in Mexico and holds over 62% of the mobile telephony services market.

However, the United States Trade Representative (USTR) has expressed concern over América Móvil entering the pay television market in Mexico. On Tuesday, Reuters reported, citing an anonymous source, that U.S. officials, including Deputy USTR Jayme White, voiced their concerns to the Mexican Ministry of the Economy and the Federal Institute of Telecommunications (IFT) about the entry of Claro TV from América Móvil into this sector.

América Móvil

In 2019, Claro TV submitted an application to enter the pay television business before the IFT.

The elaboration of a new project could lead to a new vote until 2023 or 2024.

Three of the five commissioners of the IFT Plenary (Ramiro Camacho, Sostenes Díaz, and Arturo Robles) opposed the project that aimed to deny Claro TV the concession to provide the service, arguing that the presented document was inadequate.

On the other hand, Commissioners Adolfo Cuevas and Javier Juárez would have voted against América Móvil entering the pay TV market.

Currently, the company plans to further develop its existing activities. Additionally, when opportunities arise, it aims to make strategic acquisitions. This approach will help to continually increase its user base, strengthen its leadership in offering integrated telecommunications services in Latin America and the Caribbean, and facilitate growth in other regions.

Redacción Opportimes

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