Mexican media conglomerate Televisa S.A. (TV) moved forward with a $1.6 billion investment into wireless operator Group Iusacell S.A. de C.V. that will allow Televisa to add mobile services to its portfolio and become a major player in the country’s telecom space.
The investment will provide Televisa with a 50% stake in Iusacell, which is currently Mexico’s No. 3 operator with approximately four million wireless subscribers. The carrier offers both CDMA and HSPA services as well as offers Apple Inc.’s iPhone device.
Televisa said in a statement that the deal will allow the company to offer quad-play services.
Televisa has previously dabbled in the mobile space having engaged in talks with NII Holdings Inc. last year that included the possibility of Televisa investing an equity stake in NII. That deal was fostered ahead of a spectrum auction that was expected to help fuel the deployment of W-CDMA services for NII. The deal between Televisa and NII eventually fell apart with no investment made by Televisa into NII.
The Mexican mobile market is dominated by Telcel, which is owned by America Movil S.A.B. de C.V., with more than 60 million customers and more than 70% of the country’s total wireless customers. Telefonica S.A.’s Movistar is the second largest operator with more than 18 million customers.
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