Movistar Mexico to change strategy after the Telecoms Reform
Movistar México (owned by Spanish telco Telefónica) is looking at entering new business segments and reorienting its investments in the country as a result of the telecoms reform which was recently signed into law by President Enrique Peña Nieto, according to BNAmericas.
The telco's investment plan will definitely be modified, but the operator will wait and see what measures the new telecoms regulator Ifetel will implement, the executive president of Telefónica México, Francisco Gil, said in an interview with local publication Milenio.
Telefónica will reorient its investments to other areas, depending on the options that open up as a result of the reforms
Telefónica invested 427mn euros in Mexico during 2012, down 9.4% from the 471mn euros the previous year. Telefónica has a license to operate satellite TV services in Mexico, but has never initiated commercial TV services. The operator has been present in Mexico since 1998, but only operates wireless services.
According to BNAmericas, Movistar saw revenues of 388mn euros (US$517mn) in the country in Q1, compared to América Móvil's Mexico revenues of 66.3bn pesos (US$5.23bn). (América Móvil controls around 80% of the mobile market in Mexico).