Mexico: CFC Authorizes Bid for Broadcast TV

Eduardo Pérez Motta, president of Mexico's Federal Competition Committee (CFC), said if there is a bid for broadcast services, his agency will oversee the auction and ensure fair competition. "We need to conduct a preliminary market analysis to make sure that none of the potential bidders would jeopardize fair competition due to excessive accumulation within the sector," he was quoted as saying by Mexican newspaper El Universal.

He said the committee will determine whether to allow Televisa and TV Azteca to take part in the third TV network, saying that no one can be excluded. "But we cannot ensure that everybody would be allowed to participate," he said. The CFC would study the broadcast TV market to make sure there are no "prevailing stakeholders" following Cofetel's suggestions.

The official said that even though including must-carry and must-offer clauses in the regulations would not be a condition required to conduct the broadcast TV bid, it would actually be desirable as would provisions to increase competition within the telecommunications industry.

The CFC would have to define the relevant market. In this case, the relevant market would be television, considered outside of the telecommunications niche until now. And if a segment operator decided to participate in the tender, its presence in other markets would be analyzed.
In regard to Teléfonos de México's involvement in the tender, Pérez Motta said the CFC should study clause 1.9 under the company concession to determine what is meant by a prohibition to enter the video market. "I understand that its infrastructure impedes them to provide restricted video and from my point of view broadcast TV channels with a larger infrastructure have other possibilities, but this has to undergo a due process of study," the official said.

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