America Movil’s Telmex Loses Legal Bid for TV, Universal Says

America Movil SAB’s Telmex unit lost a lawsuit seeking to force the government to grant it a license to offer pay-TV service, El Universal newspaper columnist Maricarmen Cortes said.

An appeals court ruled yesterday that the Communications and Transporation Ministry had the authority to reject Telmex’s petition for a license, Cortes said, citing Gerardo Sanchez Henkel, the ministry’s legal director. The decision can’t be appealed, she said.

It’s unclear whether, after yesterday’s ruling, Mexico’s Supreme Court will find it necessary to take up a separate case over whether the ministry erred in denying the license, the columnist said, citing unidentified lawyers.

Telmex can renew its request for a license with the ministry, as long as it’s willing to accept rules on network connections with competitors, Cortes said.

A press official at the ministry, who asked not to be named because of internal policy, confirmed the ruling and said he didn’t immediately have more information. A Telmex official, who asked not to be identified because of company policy, declined to comment.

Telmex’s formal name is Telefonos de Mexico SAB.

To contact the reporter on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net