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The CFC rejected their decisions favoring Televisa

Televisa and Nextel must participate as a single economic group in the bidding for radio spectrum frequencies to avoid hoarding and opportunity to others, said Eduardo Perez Motta, president of the Federal Competition Commission.

The tender will be for mobile and considered that these companies are interested in the 1.7 GHz band to achieve national coverage in the service.

Also tendered the 1.9 GHz band to complement the service offering and deploy mobile technology known as third generation.

"At the bidding of 1.7 GHz, two packets of 30 MHz and if (Televisa and Nextel) had entered as separate companies, each could get a block. The fact that Televisa and Nextel have this relationship equity, it makes us think they are a single economic group. There could indeed difficult for them to see two pieces of 30 MHz and becomes another block for a third participant, "Perez Motta said in an interview.

He said this action would generate more spectrum to obtain the other participants in the tender and denied that the decisions of the CFC are favoring Televisa.

The antitrust authority approved the acquisition of 30 percent of Nextel by Televisa, in a transaction amounting to thousand 440 million dollars but has an option to acquire an additional stake of 7.5 per cent stake in the mobile enterprise.

Perez Motta justified the decision saying that Nextel may be a stronger competitor in the mobile market.

"Televisa is not in the mobile market and Nextel is not television. The only coincidence that there are fixed, reaching 1.5 percent of the market.

"And they have a match in the Internet market, which reaches 7 percent, no problem really. So we said we would not impair competition. To the extent that power to a relatively smaller competitor in the market but efficient (Nextel) promote competition, "the official said.

Perez Motta said the government should tender the spectrum recovered following that refused to extend various concessions.

It is recalled that the Ministry of Communications and Transportation denied the renewal of nine concessions MVS restricted audio, which can be used for mobile telephony. In addition to channels 52 and 46, MVS, and Cablevision, respectively.

Reference: El Reforma, México