Mexico signals DTT licence auction

The Mexican television market will open itself up to new domestic and international players when the country holds its first DTT channel auction.

Local media regulator Cofetel has approved proposals for the auction of two new nationwide channels in Mexico, potentially threatening the dominance of broadcasting giants Televisa and TV Azteca.

The duo have a combined 95% share of the Mexican television market, and more than half its cable TV business. They also have substantial in-house production arms.

America Movil, a telecoms company led by Carlos Slim, reputedly the world’s richest man, is among those likely to bid for one of the new licences.

The company has 14 million satellite and cable subscribers across Latin America, all outside Mexico, and the auction could allow Slim to enter the domestic market for the first time.

In March, he backed the launch of US internet TV network Ora.tv, which will include a new talkshow with Larry King. It could debut later this year.

And last year, America Movil also purchased DLA, a Miami-based digital media company that produces and distributed television series and movies. In 2011, Slim also began producing TV series for Colombian TV.

International players could also be attracted to the Mexican DTT licences, following in the footsteps of Time Warner, which in 2010 broke into the Chilean television market by acquiring local broadcaster Chilevision.

Cofetel said in a statement the plans represented “the first auction of television frequencies in the history of the country,” and it hopes the process will lead to greater competition and diversification of TV content.