South of The Border: Can Grupo Televisa Dethrone America Movil?

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The dominant player in Mexico’s telecommunications market, America Movil, is getting some competition from its rival Grupo Televisa, reported Yahoo Finance. Due to the adverse economic effects of COVID-19, Televisa, under the name Izzi, is offering low-priced phone packages as a way to penetrate the wireless marketplace.

Televisa’s Izzi offers best-in-class broadband, TV services (including content), and telephone services to customers. Currently, Mexico has low-level broadband penetration, according to Yahoo Finance, and Izzi’s offerings of fiber-based broadband plus on-demand content are bolstering competition in the marketplace.

Reportedly, Televisa will sell affordable phone packages at nearly 80 percent less than America Movil and offer services to three million households across seventeen cities in Mexico. Televisa will accomplish this by renting space on Mexico’s wholesale telco network, Red Compartida.

According to Yahoo Finance, there are concerns whether Televisa can truly compete with America Movil, since its mobile arm, Telcel, is the undisputed leader in the Mexican wireless market and holds two-thirds of mobile connections. In 2013, the government passed a constitutional reform to upset America Movil’s position as the dominant market player, however, both AT&T and Telefónica failed to penetrate the marketplace.

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