Mexico's Megacable eyes possible U.S. phone venture

MEXICO CITY Thu Sep 13, 2012 6:21pm EDT

Megacable CEO Enrique Yamuni speaks during the Reuters Latin American Investment Summit in Mexico City May 6, 2010. REUTERS/Claudia Daut

Megacable CEO Enrique Yamuni speaks during the Reuters Latin American Investment Summit in Mexico City May 6, 2010.

Credit: Reuters/Claudia Daut

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MEXICO CITY (Reuters) - Mexico's Megacable has held talks with Time Warner Cable regarding a possible phone venture aimed at the Hispanic market in the United States, the company's Chief Executive Enrique Yamuni said.

"We have talked with Time Warner (Cable), but only to explore some sort of strategic alliance with them," Yamuni told Reuters on Thursday. He emphasized that the talks did not cover any possible sale.

Time Warner Cable was not immediately available for comment.

Yamuni added that the strategic alliance would allow Time Warner Cable subscribers to receive phone calls from Megacable users without the long-distance charges.

"It would be for all the USA," he said.

Megacable started like a cable company but in recent years it expanded outside its core market, adding phone and Internet services to the mix. Time Warner Cable also offers so-called triple play packages to customers in the United States.

Additionally, Megacable launched last year mobile services using the network of the Mexican arm of Spain's Telefonica (TEF.MC) although the venture has not picked up as fast as originally expected, Yamuni said.

Megacable, which slipped 0.68 percent to close at 29 pesos on Thursday, plans to invest $170 million in 2013 to continue expanding services, similar to this year's capital expenditures, Yamuni said.

Megacable has a commercial deal with Mexican broadcaster Televisa (TLVACPO.MX) (TV.N) to promote triple play under the YOO brand.

(Reporting by Cyntia Barrera and Tomas Sarmiento; writing by David Alire Garcia; editing by Carol Bishopric, Bernard Orr)

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