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Mexico Imposes Restrictions On Broadcaster Televisa, Carlos Slim's Telecom America Movil

Mexico's Federal Telecommunications Institute (IFT) ruled that broadcaster Televisa "will have to give up its exclusive broadcast rights to sporting events including Liga MX, the World Cup and the Olympics, among others," according to LA AFICION. The ruling means that Televisa Owner Emilio Azcárraga Jean's company "will be able to have rights to an event, but will be 'obligated' to negotiate rights with other broadcasters" (LA AFICION, 3/7). The AP's Mark Stevenson reported the IFT also declared Carlos Slim's telecom company, America Movil, a "preponderant" market player as part of an "effort by the government to promote competitiveness in the telecommunications sector." By declaring Televisa and America Movil "preponderant," authorities can "impose restrictions on the companies to allow others to enter the sector dominated by a handful of telecom providers." The IFT also "approved plans to open bidding for two new nationwide TV channels, to foment more competition in an industry where the Televisa network holds about 70 percent of non-cable viewership." Televisa bills itself as the "largest media outlet in the Spanish-speaking world." Currently, Televisa's only broadcast TV competitors are "several government educational channels and the smaller TV Azteca, a former government network" privatized in the '90s. By midday, Televisa shares "were down about 3.4 percent on the news." For a move "aimed at ending market concentration," the "paradoxical" decision could "open the way for Slim to get into television." Slim's America Movil company controls about a 70% market share in cellphones and 80% of land lines. Televisa said in a statement that the IFT's decision requires it to "make its broadcasting infrastructure available to third parties on a non-discriminatory and non-exclusive basis." The IFT said that Televisa will be "barred from buying exclusive rights to broadcast programs with unique characteristics that in the past have delivered large audiences on a national or regional basis" (AP, 3/7).

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