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Paper Title

-- By LiliAbascal - 17 Nov 2012

Situation of the Telecommunications Industry in Mexico

Monopolies dominate the Mexican economy, and the telecommunication sector is no exception of this problem. The telephony and internet access markets are dominated by two companies owned by Mr. Carlos Slim: Telmex and Telcel. Mr. Slim’s companies have market shares of 80%, 70% and 74% of the fixed line, mobile and internet access markets respectively . Besides that, Mr. Slim has constantly expressed his desire to own a TV channel; however, his companies are expressly forbidden to do so in Mexico. Despite not being authorized to provide TV services, Mr. Slim owns an online “TV Channel” called “Uno TV”. “Uno TV” has its own news program and provides free of charge daily news (via a SMS) to all of Telcel’s subscribers. Telmex also entered into an alliance with MVS Multivisión (a cable, radio and internet provider) to distribute satellite TV.

On the other hand, there are two dominant mass media conglomerates: Televisa and TV Azteca. Televisa is the largest mass media company in Latin America and in the Spanish speaking world . By the end of 2010 it had 70.5% of the average number of TV spectators in Mexico during prime time , and it had direct participation in cable and satellite TV, radio, magazines, telecommunication networks and internet, among others. The other company, and Televisa’s former rival, TV Azteca, by the end of 2010 absorbed 24.9% of the prime time audience and belonged to the same corporate group as Iusacell, the third mobile provider in Mexico. TV Azteca’s group also participates in the musical industry, and is a provider of cable TV, telephony and broadband internet. Those numbers acquire more relevance if one considers that according to a national survey, 95.5% of the Mexicans are informed of what happens through television.

Notwithstanding the severe market concentration, on June, 2012 the Mexican competition authority approved an alliance by which Televisa would become the owner of 50% of Iusacell, remaining the other 50% in the hands of TV Azteca.

With such numbers it is easy to understand the power that the telecom owners exercise. They are factual powers and dominate the Mexican political agenda. Another result of this concentration is that the information that most Mexicans receive is highly biased and there is neither diversity nor plurality.

Section II

Subsection A

Subsection B

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