UPDATE 1-Mexico's Televisa eyeing local Nextel acquisition

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MEXICO CITY Feb 8 (Reuters) - Mexican media group Televisa has submitted a proposal to the country's antitrust commission to acquire part of wireless phone operator Nextel's Mexico operation, a source at the commission said on Monday.

Mexican media reports said last month that Televisa, which would like to expand into triple-play services, was looking at paying $1 billion for a stake of between 20 and 30 percent in Nextel Mexico, part of the NII (NIHD.O) group.

Consumers are expected to gravitate toward media companies that can bundle television, Internet and phone services, so leading providers are looking for ways to combine those services under one roof. Companies are also looking to expand wireless networks that can serve more sophisticated cell phones.

Late last month, NII Holdings said it plans to bid for new frequencies to bolster its coverage in Mexico as it deploys 'third generation' wireless technology across the region.

The Mexican government had previously launched the long-awaited terms for mobile-phone frequency auctions, and hopes to unveil winners by mid-year. Such a big sale of added wireless capacity in the country is the first in at least a decade.

Rival companies are willing to team up to improve their chances of buying the best bands. The process is expected to lure blue chips like Spain's Telefonica (TEF.MC) and Mexican media company Televisa (TV.N) (TLVACPO.MX).

Cablevision, the cable unit of Televisa, said last month that it will boost its broadband speed, following the lead of rival Telmex, owned by tycoon Carlos Slim, as competition in the telecom market heats up. (Reporting by Tomas Sarmiento, editing by Matthew Lewis)