CATV association wants Telmex TV heavily regulated, papers say

24 Nov 2006

Mexico’s cable TV association, Cámara Nacional de la Industria de Telecomunicaciones por Cable (CANITEC), has asked the Senate to review the much-delayed convergence legislation that allows incumbent fixed line operator Telmex to enter the broadcast market for the first time, writes BNamericas quoting local paper El Financiero. CANITEC president Alejandro Puente wants Telmex’s forthcoming TV services to be heavily regulated to ensure the telco does not hinder competition, and has asked that the Comisión Federal de Telecomunicaciones (Cofetel) be given more authority to penalise Telmex should it abuse its position.

According to TeleGeography’s GlobalComms database, last month the Secretario de Comunicaciones y Transportes (SCT) introduced long-awaited legislation allowing for the launch of the country’s first true triple-play voice, internet and TV services. The change in regulations will allow Mexico’s numerous cable operators to launch local telephony services over their own networks for the first time, and provides for telephony providers to enter the TV market in return. Under the rules, Cofetel has until mid-December to draft interconnection regulations for cablecos and phone companies, and amend operating concessions to provide for the provision of additional services. The rules are aimed at ramping up competition in the fixed line telephony sector where Telmex has around 93% market share, but many CATV operators are concerned that by allowing the incumbent to enter the broadcast sector, it could have the adverse effect of extending its dominance to the TV market.