America Movil Has Opening for Telmex TV With Mexico Phone Pact

America Movil SAB’s landline unit has a new opportunity to offer pay-television services after Mexico’s telecommunications regulator approved an industrywide interconnection agreement.

Commissioners at the agency known as Cofetel voted in favor of the pact yesterday, according to a statement. The proposal will be published in early February following approval by Mexico’s Regulatory Improvement Commission, Cofetel said.

America Movil’s Telmex unit could get a license for video service if it agrees to the terms of the pact, known as the Interconnection Framework Accord, the government has said. Telmex has been seeking a TV license to combine with its landline phone and video services to keep customers from switching to cable carriers owned by Grupo Televisa SAB. (TLEVICPO)

A Telmex official who asked not to be named under company policy declined to comment on whether the Mexico City-based phone carrier would support the document. The company said last year it was seeking modifications to the draft of the agreement.

Cofetel’s board meeting yesterday approving the document was “important (and I would say historic),” said Mony de Swaan, president of the agency, in a post on his Twitter account yesterday. The document was drafted with the participation of 21 companies and eight experts, Cofetel said.

In addition to signing the framework accord, Telmex would need to pay a fee determined by the Finance Ministry and to seek approval from the Communications and Transportation Ministry, the latter agency said in July.

Yesterday, an appeals court rejected a bid by Telmex to overturn an earlier communications ministry ruling denying the company a TV license, de Swaan said on his Twitter account.

To contact the reporters on this story: Crayton Harrison in Mexico City at tharrison5@bloomberg.net; Jonathan Roeder in Mexico City at jroeder@bloomberg.net

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

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