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Mexico tycoons fight over TV, phone markets
Published in The Saudi Gazette on 05 - 03 - 2011

MEXICO CITY: Tensions are rising between the world's richest man Carlos Slim and two other Mexican billionaires over control of TV and telephone markets in the most populous Spanish-speaking country.
More than 20 Mexican telephone and cable operators Wednesday asked the government to regulate the fees charged by Slim's dominant Telcel mobile operator to connect to its networks, setting off accusations on all sides.
Telecoms tycoon Slim is facing off against Emilio Azcarraga, head of Televisa, the world's largest Spanish-speaking television empire, and Ricardo Salinas, owner of only the second television network in Mexico, TV Azteca.
Televisa and TV Azteca have both launched competitive bundled “triple-play” – TV, Internet, and telephone – services and are starting to encroach on territory traditionally held by Slim.
But authorities have so far prevented Slim, whose Telmex is Mexico's number one fixed line company and whose Telcel dominates the mobile market, from offering television services. A string of related disputes are now simmering.
In recent weeks, several of Slim's companies stopped advertising on Televisa in a disagreement over rates.
TV Azteca, Mexico's second broadcaster, then refused advertising space to Slim's companies unless Telcel offered lower interconnection rates to the phone companies of Salinas, a move Slim's spokesman likened to “blackmail.”
Mexico's Federal Competition Commission (CFC) said the dispute was an opportunity to try to resolve notoriously high rates in the telecoms industry and to seek more competition in television services.
The telephone operators, citing CFC figures, said Wednesday that if the government intervened to lower interconnection charges customers could save around 73.5 billion pesos (about $billion).


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