UPDATE 2-Mexico's Televisa sees tax hit ahead, eyes wireless

* Sees negative impact from planned higher taxes

* In talks with other players for wireless phones

* Rules out short-term deal with partner Megacable

(Adds details on wireless plans)

By Cyntia Barrera Diaz

MEXICO CITY, Oct 23 (Reuters) - Mexican broadcaster Televisa expects planned tax increases in Mexico to hit profits, but still plans to bid in a long-awaited spectrum auction to develop a wireless phone network in the country.

Mexico's lower house of Congress this week passed a watered-down version of President Felipe Calderon's tax reform proposal. Senators are now revising the plan to raise a value- added tax, along with levies on beer, telecommunications, gaming and high income earners.

"If approved by the Mexican Senate, these new taxes, and increases on current taxes, will have a material negative impact on our company and its subsidiaries," Televisa's Executive Vice President Alfonso de Angoitia told analysts during a conference call on Friday.

Televisa (TV.N) (TLVACPO.MX), the world's biggest producer of Spanish-language content, offers television, Internet and telephone packages using its broadband network, but wants to add wireless communications to the mix.

It also operates dozens of bingo halls across the country.

The company, famous for its tear-jerker soap operas, is waiting for the publication of rules governing a planned auction of wireless spectrum that the government hopes will boost competition in Mexico's telecommunications market.

"We are open to participate in the spectrum auctions, also jointly with already established wireless operators," De Angoitia said. "We are also in discussions with experienced international players," he added without mentioning names.

BRANCHING OUT

Televisa has expanded outside its core broadcast television business in recent years to boost revenue and remain relevant in a changing market where customers increasingly favor exclusive TV content and access to the Internet.

The company's recent bets on cable and satellite television have proved successful, although rising competition has forced it to rethink marketing strategies.

The arrival last year of smaller rival Dish was a particularly strong blow to Televisa's pay television units. Dish, with its super cheap, no-frills satellite TV offer, hopes to end its first year of operations with 1 million customers.