UPDATE 3-Mexico's Televisa gets approval for cable buy

(Adds Perez Motta comments, background, byline)

By Cyntia Barrera Diaz

MEXICO CITY, May 13 (Reuters) - Mexico's competition agency has approved Televisa's purchase of a 49 percent stake in cable firm Cablemas, a key move to strengthen the broadcaster's position in the pay-per-view, Internet and phone markets.

Mexico's Federal Competition Commission (CFC) said on Tuesday that Televisa could go ahead with the deal after meeting a series of requirements, including offering its content to smaller regional competitors to guarantee a level playing field for all cable operators.

In 2006, Televisa (TV.N: Quote, Profile, Research, Stock Buzz) (TLVACPO.MX: Quote, Profile, Research, Stock Buzz), the world's top producer of Spanish-language content, invested $258 million in notes of a company that holds 49 percent of Cablemas. With the approval, the notes can now be converted into equity.

Televisa was not immediately available for comment.

"This means Televisa is increasing its reach in the video market but this is no longer the only market (that matters)," Eduardo Perez Motta, head of the CFC, said in a radio interview.

"The market is also telephony and Internet. This means that we have a bigger player (Televisa) to compete with the fixed-line phone operators and with broad band providers," he added, referring to leader Telefonos de Mexico (Telmex), and other rivals like Axtel and Alestra.

Telmex (TMX.N: Quote, Profile, Research, Stock Buzz) (TELMEXL.MX: Quote, Profile, Research, Stock Buzz) is the biggest provider of fixed-line phone services in Mexico and is owned by Carlos Slim, one of the richest men in the world.