INTERVIEW-UPDATE 2-Mexico's Megacable to tap mobile phones

* Megacable ready for mobile phones in early 2010

* Will pass on cost of new telecoms tax to customers

* New tax not seen crippling industry

(Adds CEO quotes, Televisa top choice as MVNO, stock price)

By Cyntia Barrera Diaz and Tomas Sarmiento

MEXICO CITY, Nov 5 (Reuters) - Mexican cable television operator Megacable has lined up a partner to launch mobile phone services by the first quarter of 2010, its chief executive said on Thursday, as it taps a market led by tycoon Carlos Slim's America Movil.

Megacable (MEGACPO.MX) will use a mobile virtual network operator (MVNO) model to offer cellphone services in Mexico, expanding outside its core pay television business, Enrique Yamuni told Reuters in a phone interview.

Virtual networks, created by striking a deal to use the spectrum and infrastructure of an established cellphone operator, are seen as a relatively low-cost way to enter a mobile telephone market.

Yamuni declined to name Megacable's partner but anticipated that Guadalajara in western Mexico, the company's home city, would be the first city to offer the new mobile service.

Partner Televisa (TV.N) (TLVACPO.MX) is Megacable's first choice to launch the MVNO model but Yamuni said it is not clear yet if they will proceed together in the mobile venture.

Televisa's three cable companies -- Cablevision (CABLECPO.MX), Cablemas and Cablevision Monterrey -- teamed with Megacable earlier this year to market a $38-per-month Internet, cable and phone package under the "YOO" banner.

Televisa has said it also wants to launch a wireless network in Mexico.

He also said that a recently approved new tax of 3 percent on telecommunications services should not have a "catastrophic" impact on the industry but thinks that it hurts penetration of services and hits consumer with higher prices.

"We will pass along the tax to consumers," he said, explaining telecom companies were already hit by the depreciation of the peso that sharply increased dollar-denominated costs during 2009.

"It demoralizes and upsets consumers as they have to pay a tax on a service that has no reason for being," he added, noting that nonessential media, like tabloids and erotic magazines, were not slapped with additional taxes.

Mexican lawmakers finalized last weekend a watered-down version of President Felipe Calderon's fiscal reform package to boost tax revenues, cut Mexico's dependence on oil and try to prevent a downgrade from international rating agencies.

Deputies and the Senate approved the telecommunications tax, which excludes Internet services and rural and public telephony. Congress also passed an increase in the value-added tax rate, or VAT, to 16 percent from 15 percent and raised the top income tax rate to 30 percent from 28 percent.

Beer and tobacco got tax hikes, too.

Yamuni estimated the number of Megacable cable subscribers will likely rise 7 percent this year compared to 2008, while Internet users could grow as much as 18 percent and fixed-phone clients by 50 percent.

For 2010, all its services are seen exceeding 2009's growth pace despite the new tax.

Megacable shares rose nearly 7 percent to close at 29.08 pesos on Thursday.

((cyntia.barrera@thomsonreuters.com; + 52 55 5282 7153; Reuters messaging: cyntia.barrera.reuters.com@reuters.net)) Keywords: MEGACABLE/

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