Cofeco to examine triple-play sector amid claims of monopolistic practices

13 Jul 2011

Mexico’s Federal Competition Commission (Cofeco) has reportedly opened an investigation into ‘relative monopolistic practices’ in the triple-play market, Bloomberg reports. It is understood that the regulator aims to review agreements between companies to determine whether or not these may have the ‘objective or effect of inappropriately displacing other market participants.’ The development comes on the back of complaints lodged by a number of the country’s operators, with fixed line incumbent and dominant market player Telefonos de Mexico (Telmex) in March this year having argued that commercial agreements between local broadcast giant Grupo Televisa and alternative broadband provider Megacable hurt competition. As noted in TeleGeography’s GlobalComms Database, in May 2009 Televisa and Megacable announced that they would partner to offer standardised triple-play bundles aimed at low-income earners, with packages offered under the ‘YOO’ banner.

Telmex itself meanwhile looks set to be investigated over its relationship with satellite TV provider DISH. With the incumbent currently banned from entering the television sector, rivals have long argued that a deal between Telmex and DISH breaches that ban; for its part Telmex has contended that the scope of its agreement with the DTH provider is narrow, with it providing nothing more than a single bill for shared services. Televisa filed a complaint against the Telmex/DISH partnership earlier this year.