Megacable planning MVNO venture

9 Nov 2009

Mexican cableco Megacable is planning to launch mobile voice services in the first quarter of 2010, having already lined up an agreement with an existing network provider, according to Reuters. Citing comments from the telco’s chief executive officer, Enrique Yamuni, the report claims that Guadalajara, where the company is headquartered, will likely be the first city to benefit from the new service offering. Megacable has, however, not disclosed the identity of the mobile network operator that it has signed a deal with. Having earlier this year joined forces with broadcaster Televisa, which operates in the telecoms market through three cablecos – Cablevision, Cablemas and Cablevision Monterrey – it is thought that a further tie-up could be on the cards; the companies revealed in May 2009 that they would partner to offer standardised triple-play bundles of fixed line voice, broadband and cable television, and this could be expanded to quad-play packages. Yamuni also revealed that Megacable expects its cable-TV subscriber base to rise by approximately 7% this year, while customers signed up to its broadband and fixed line voice services may rise by up to 18% and 50% respectively.

In separate but related news, Cablevision will spend around USD450 million on upgrading its network in Mexico City, according to a report also by Bloomberg. The funds are expected to be spent over a three-year period, with the aim of helping the telco expand its reach to a further one million potential customers by 2012. As part of the investment plan, Cablevision will overhaul its existing network by upgrading to new fibre-optic lines across the entire infrastructure that will allow it to offer broadband at speeds of up to 6Mbps; as at end September 2009 around 20% of Cablevision’s network utilised fibre-optic cabling.

Mexico, Cablemas (Izzi/Wizz), Cablevision (Izzi), Megacable