Mexico's Telmex says ready for Internet-based TV
MEXICO CITY, July 23 (Reuters) - Mexico's top fixed-line phone operator, Telmex, is ready to launch Internet-based television and is just waiting for the government's green light to launch the new service, key to boosting lukewarm results.
Telmex, controlled by Carlos Slim -- one of the richest men in the world -- has seen profits and revenue growth slow down in recent quarters, hurt by rising competition from cell phone and cable providers.
The company posted a 13-percent decline in second-quarter net profit on Tuesday as its revenue fell 6.3 percent.
Web-based television, or IPTV, will allow Telmex (TMX.N) (TELMEXL.MX) to use its existing broadband network to carry video and bundle its other phone and Internet services at attractive prices for customers.
"We have been preparing our telecommunications platform to provide triple-play services, we are ready to provide IPTV," Chief Financial Officer Adolfo Cerezo told analysts at a conference call on Wednesday.
In order to provide IPTV, Telmex had to meet a series of conditions, including allowing cable companies to interconnect with its network and being ready for number portability, or switching operators without having to change phone numbers.
Another issue delaying Telmex's plans is a government decision on whether the company should pay an additional fee to amend its concession and include IPTV as another service it can provide.
Triple play services were not on the map when Telmex's concession was granted more than a decade ago.
"How long will it take? I don't know. I would like to have a crystal ball in my hands to give you a good estimation but my assumption is that it shouldn't take too long," Cerezo said. "Telmex has already complied with all the things it was asked to comply with."
Companies like Cablevision, a unit of broadcaster Televisa (TV.N) (TLVACPO.MX), already offer triple-play to its clients in the Mexico City area.
Telmex has also asked for a license to download satellite signals and access hard-to-reach areas across the country for educational purposes. (Reporting by Cyntia Barrera Diaz, editing by Phil Berlowitz)
