IFT denies Telmex license to offer pay TV in Mexico

Telmex asked the Mexican Federal Telecommunications Institute (IFT) for a license to offer pay TV in Mexico since the company will carry out its functional separation, as it was requested by the regulator. However, the IFT denied that request, according to El Universal.
In its separation plan, the company requested that the regulator “confirm the criteria regarding the granting of a single concession for commercial use for the provision of audio and video services through its own infrastructure or from third parties, to a direct or indirectly subsidiary of América Móvil”. The telco asked to carry out one single procedure to get the approval.
After analyzing the information provided by the company, the regulator, however, denied the request alleging that it must be submitted independently, since this resolution “deals with an act of execution of the measures imposed in the biennial resolution, relating to functional separation.”
This week, local media reported that a Mexican court accepted the amparo filed by América Móvil against the Functional Separation Plan of Telmex and Telnor. However, the separation process is ongoing because it is not possible to suspend this type of resolution.
América Móvil is the largest pay TV group in Latin America in term of subscribers. The company has operations in Colombia, Brazil, Chile and Ecuador, among other markets in the region. This year, it obtained a license to provide pay TV in Argentina.