Satellite TV Company Dish Launches Service In Mexico City
April 20 2009 - 9:41AM
Dow Jones News
Satellite television provider Dish Mexico has launched its
service in Mexico City and the surrounding urban area, upping the
ante against incumbent operator Grupo Televisa SAB (TV).
The launch brings to 10 the number of cities where Dish Mexico
offers service since it started operations last November, the
company said in a press release Sunday.
"Of the potential pay-TV market in Mexico of around 18 million
homes, Dish Mexico has a clear opportunity in at least 12 million,
of which it hopes to cover 50% in a short period," the company
said.
Dish also said it eventually expects to create between 5,000 and
6,000 new jobs.
Dish, a joint venture between local telecommunications firm MVS
Comunicaciones and EchoStar Corporation (SATS), offers a basic
pay-TV package for as little as 149 pesos ($11.20) a month.
It competes with Televisa's satellite TV unit Sky through a
billing and distribution agreement it has with Telefonos de Mexico
SAB (TMX), Mexico's biggest fixed-line phone company.
Telmex's deal with Dish is considered by analysts to be a way
for the fixed-line carrier to skirt local rules prohibiting it from
offering pay-TV services directly.
Telmex faces increasing competition from cable TV companies
offering bundled packages of phone, broadband and pay-TV services
to consumers.
Televisa, Mexico's No. 1 broadcaster and the largest producer of
Spanish-language content in the world, also has substantial cable
TV assets through its stakes in Mexico City-based Empresas
Cablevision SAB (CABLE.MX), Monterrey-based TVI and Cablemas
SA.
Televisa's local CPO shares were recently down 2.2% at MXN42.40
in early trading Monday.
-By Ken Parks, Dow Jones Newswires, 52-55-5001-5723,
ken.parks@dowjones.com