Axtel granted permission to offer TV services; triple-play bundles expected in 2010

16 Sep 2009

Mexican fixed line and broadband operator Axtel looks set to break in to the triple-play market, having been issued with a licence to provide direct-to-home (DTH) or satellite TV services by the Secretario de Comunicaciones y Transportes (SCT). The operator says it expects to launch bundled services including fixed line voice, high speed internet and TV services in 2010. Commenting on the development, Tomas Milmo Santos, chairman and CEO of Axtel, noted: ‘This new initiative to provide video services to Axtel’s residential customers is consistent with the company’s strategy to become a fully integrated telecom services provider. The data and voice services provided with WiMAX technology will now be enhanced with video, strengthening Axtel’s competitive position in the residential market segment.’ Additionally, the company claims that it does not expect any significant increase in capital expenditure in order to undertake the introduction of these new services.

By contrast, Mexico’s dominant fixed line provider, Telefonos de Mexico (Telmex), is still awaiting a decision from the federal government that would allow it to provide triple-play services; according to TeleGeography’s GlobalComms Database, launch of such services was initially restricted by regulatory commitments imposed on the telco, including the guaranteeing of interconnection for all cablecos wishing to offer telephony services, and the implementation of systems enabling fixed and mobile number portability. Despite claims that it had fulfilled its obligations, Telmex is still restricted from offering triple-play bundles.

Mexico, Axtel