By Chris Aspin and Tomas Sarmiento
MEXICO CITY (Reuters) - Mexican fixed-line phone giant Telmex will be allowed to offer TV services later this year, once it fulfills conditions to improve competition, Communications and Transport Minister Luis Tellez said on Wednesday.
Telmex's planned move into broadcasting has been shrouded in controversy because its operating concession can be read to mean it is banned from going into the TV business.
Mexico's competition watchdog believes that Telmex, controlled by billionaire tycoon Carlos Slim, is prevented from offering TV services because of limits on its concession. The cable television industry fears Telmex's entry into the broadcasting world.
"In the end, Telmex is going to be able to offer this service ... we are working on it and seeing what the conditions are that they have to fulfill," Tellez told the Reuters Latin America Investment Summit.
"They are conditions that bring more opening, more competition and better prices for users."
Telmex (TELMEXL.MX: Quote, Profile, Research, Stock Buzz) (TMX.N: Quote, Profile, Research, Stock Buzz) is Mexico's largest provider of high speed Internet service, which analysts say puts it in a good position to broadcast television over its Internet network.
The concession controversy and a probe into monopolistic practices in the fixed line industry have held back Telmex's long-desired bid to serve up television to its customers.
But Tellez said his ministry, Telmex and telecom regulator Cofetel were working out the details. Continued...
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