Telefonica considering Televisa tie-up in Mexico -source
By Michael O'Boyle and Christine Murray
MEXICO CITY, Sept 23 (Reuters) - Spain's Telefonica is considering a range of tie-up options in Mexico with broadcaster Grupo Televisa, including creating a new telecommunications company together, a person with knowledge of the matter said.
Mexican regulators are using new legislation to try to break billionaire Carlos Slim's stranglehold on the local telecoms market, and the new rules are expected to fuel a flurry of deals by companies seeking to grow in Mexico.
No. 2 mobile carrier Telefonica has struggled for years to gain a bigger chunk of the market and a partnership could help it convert customers with mobiles on Slim's network to its own.
"This idea is in play ... It could take lots of different forms," the source said.
It is studying several options that would allow it to leverage Televisa's 5.4 million cable video, broadband and voice subscriptions, excluding recently purchased Cablecom, the source said.
These include Televisa creating a mobile virtual network operator (MVNO) on Telefonica's network, an alliance with Televisa's cable companies and creating an entirely new company together, the source said.
Any combined company could offer television, broadband, mobile and fixed-line services, known as "quad play".
A Telefonica spokesman declined to comment, and a spokesman for Televisa did not return a request for comment. Continuación...