Megacable: Telmex’s pay TV entry doesn’t solve Televisa’s dominance

Megacable’s CEO Enrique Yamuni said in an interview with El Universal that Televisa’s dominance in pay TV will not be solved with Telmex’s entry into the market. “I do not think that the way to take power away from Televisa is to open the TV market to Telmex, there are many reasons that will have to be solved first.”

In March this year, Mexico’s telecom regulator IFT decided that Grupo Televisa is an economic agent with substantial power in the pay TV market. According to Yamuni, “the IFT has not taken any action, what they say is that they are studying the measures to be imposed.”

The manager acknowledged that Telmex’s pay TV entry “is something that will happened someday,” but said that Carlos Slim’s company “has too much power in the telecommunications market. Pay TV is not only based on satellite technology or multichannel transmission, as has traditionally been done, but is based on Internet service,” the executive explained.

Yamuni believes that the IFT can use other mechanisms to solve the problem in pay TV, for example, contents should be available to all companies, with no exclusivity. He also mentioned other measures such as the possibility of “separating companies before authorizing Telmex to offer pay TV and opening the market to more players.”