Shake-up of Mexico TV law seen good for competition

By Noel Randewich

MEXICO CITY, June 8 (Reuters) - A Mexican Supreme Court ruling this week against key parts of a television law favoring heavyweight broadcaster Televisa is seen boosting competition and improving programming in a market controlled by two firms.

Top court magistrates crossed out so much of the legislation, dubbed the "Televisa Law", that it will effectively have to be rewritten with fewer benefits for dominant players.

"The future of Mexico's modernization is at play," Communications Minister Luis Tellez said in a radio interview on Friday. "Like in other countries, it depends on telecommunications, radio and television working properly."

Mexico's television industry is dominated by Televisa (TV.N: Quote, Profile, Research, Stock Buzz) (TLVACPO.MX: Quote, Profile, Research, Stock Buzz), which has a 70 percent share of audiences and owns the country's largest cable operator and its only satellite operator. Rival TV Azteca (TVAZTCACPO.MX: Quote, Profile, Research, Stock Buzz) controls most of the rest of the television market.

The Supreme Court ruling was seen as one of the biggest legal blows against big business interests in decades.

Parts of the law struck down would have let Televisa and TV Azteca use frequency freed up through future technological improvements to launch new services without having to get permission from the government or pay a fee.

It would also have guaranteed the renewal of 20-year concessions, also for free.