Mexico's Televisa in triple-play venture
By Cyntia Barrera Diaz
MEXICO CITY, May 11 (Reuters) - Two cable units of Mexico's top broadcaster Televisa (TV.N) are teaming with at least one rival to offer a blanket $38-per-month triple play package aimed at low-income earners as competition increases.
Televisa's (TLVACPO.MX) Cablevision and Cablemas will join forces with Megacable to launch the new service under the "YOO" banner in a move to strengthen their presence in three key markets: Mexico City, Guadalajara and Monterrey.
The websites of all three companies featured the new YOO package prominently on their front pages.
The teaming of the three could also mean a direct aim at Telefonos de Mexico (TELMEXL.MX) (TMX.N), the leading fixed-line phone operator in Mexico owned by tycoon Carlos Slim, among the world's wealthiest men.
Telmex offers Internet and phone packages. A government refusal to grant it permit to operate television due to competition concerns has put its expansion on the triple play market on hold.
Televisa and competition officials were not available for comment.
Telmex is already offering billing services for Dish Mexico, the direct-to-home programming venture between Mexican media company MVS Comunicaciones and set-top-box provider EchoStar (SATS.O). In December it also launched a short Web-based newscast.
For Cablevision (CABLECPO.MX) -- which already has a phone, Internet and television offer for 657 pesos per month ($50) -- the YOO package will mean less channels available and slower broadband speed for customers who decide to switch.
"YOO is 24 percent cheaper than the (existing) triple play package from Televisa -- its lowest-priced offer -- therefore Televisa's ARPU's (average revenue per user) could contract," BBVA Bancomer analyst Andres Coello wrote in a report on Monday.
Cablemas users were already paying 499 pesos ($38) for triple-play, but with half the channels offered by YOO and half the Internet access speed, according to information on its website.
In the case of Megacable (MEGACPO.MX), based in the western city of Guadalajara, the company offered the three services separately. ($1 = 13.1445 pesos) (Editing by Anshuman Daga)
