Televisa Accepts Antitrust Conditions on Stake in Iusacell
June 18 2012 - 10:28AM
Dow Jones News
Grupo Televisa SAB (TV, TLEVISA.MX) said Monday it has accepted
conditions imposed by Mexican antitrust regulators to take a 50%
stake in mobile phone operator Iusacell.
The Mexican media company is looking to bolster its
telecommunications business by adding wireless to its existing
cable, phone and Internet services.
The Federal Competition Commission, or CFC, last week set a
number of conditions for Televisa to convert its $1.6 billion
investment in Iusacell to shares, most of them regarding the
television industry since Iusacell is owned by the controlling
shareholder of the country's No. 2 broadcaster, TV Azteca SAB
(AZTECA.MX).
The CFC had initially rejected the joint venture outright on
concerns about potential collusion in the television market,
despite welcoming the idea of greater competition in mobile
telephony. Televisa appealed that decision.
Televisa made the investment in Iusacell last year via
low-interest notes. The company said in a filing with the Mexican
stock exchange that it accepted the conditions set by the CFC and
converted the notes into shares of Iusacell holding company GSF
Telecom Holdings, of which it now holds 50%.
The Televisa investment has shored up the financial position of
Iusacell, one of Mexico's smaller wireless phone operators, as it
seeks to chip away at the 70% market share of Telcel, the local
mobile unit of billionaire Carlos Slim's telecommunications giant
America Movil SAB (AMX, AMX.MX).
Last week, Iusacell joined forces in a network-sharing alliance
with Mexico's second largest mobile phone company Telefonica SA
(TEF.MC, TEF), which operates in Mexico under the Movistar brand
with about a 22% market share by subscribers. The alliance seeks to
make more efficient use of the companies' network investments, as
well as improve coverage and quality.
Televisa is Mexico's biggest television company, with four
free-to-air broadcast channels, the largest of the two satellite
television services, and three cable units which offer TV, phone
and Internet, or "triple-play" service.
Write to Anthony Harrup at anthony.harrup@dowjones.com
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