Megacable to offer Telefonica services in Mexico

15 October 2010 |


Mexican cable TV operator Megacable Holdings will provide wireless services to its subscribers, following an agreement to supply services from Telefonica.

The deal enables Megacable to offer triple-play services – a bundle package of phone, broadband and pay TV services – in the main cities within its coverage area by the end of Q4 2010.

Telefonica Mexico is the country’s second largest operator with 18.7 million subscribers. Megacable owns and operates its own infrastructure, which ensures it will not need to transform its own network to offer these services.

Raymondo Fernandez, deputy CEO at Megacable said: “The company has defined a commercial strategy that will surely be very attractive to its subscribers. With the launching of the service, Megacable will increase the number of revenue generated units targeted.”

Megacable provides high-speed internet data services in Mexico and operates in 25 states, with over 1.7 million cable subscribers. Telefonica Mexico won wireless spectrum to deliver 3G services in two auctions this year, and they will incorporate this service within its deal with Megacable.

“With this alliance, Megacable will develop a new services platform and be included in Mexico’s mobile telecommunications sector together with Movistar’s technology,” said Isabel Mier, director of communications and institutional relations at Telefonica Mexico.

Brazil’s telecommunications regulator has approved Telefonica’s purchase of Portugal Telecom’s stake in Vivo, finalising a deal struck in August. Telefonica said it now has control of Vivo, having paid €4.5 billion to Portugal Telecom, its former 50% partner in Brasilcel, a joint venture that controls 60% of Vivo. It will pay a further €3 billion in installments over the next year, and has announced its intention of buying the remaining 40% of Vivo.