Televisa to purchase 30% stake in Nextel subject to wireless spectrum acquisition

16 Feb 2010

Hot on the heels of the announcement that it had been granted regulatory approval to acquire a stake in Nextel de Mexico, Mexican broadcasting giant Televisa has revealed that it has agreed to pay USD1.44 billion for a 30% holding in the digital trunking operator. According to Reuters, the deal is contingent on the success of a joint bid by the two companies for wireless spectrum in the country’s forthcoming auctions, due to be held in May 2010. However, should the two fail to bag new spectrum the deal will be dissolved with no penalty fee applying for Televisa.

Like a number of other Mexican fixed line operators, including Megacable and Axtel, Televisa, which controls cablecos Cablevision and Cablemas, is keen to enter the wireless sector in order to offer quadruple-play bundles. The potential tie-up between Televisa and Nextel is widely regarded as a forebear of a likely shake-up of the Mexican telecoms sector as operators look to forge partnerships to better compete with dominant fixed line and wireless operators, Telefonos de Mexico (Telmex) and Telcel, both of which are controlled by billionaire Carlos Slim.

Mexico, Nextel de Mexico, NII Holdings