Monday, October 3, 2016

Internet, solution of Telmex after 10 years without a television – The Universal

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After 10 years of trying to offer pay television in Mexico, Telmex has used the internet television to provide audio and video to their users.

At the end of 2008, the company launched One TV, a news channel through internet video and in 2012 began with the offer of pay television in line with Claro Video, a Over-The-Top (OTT, for its acronym in English), with a cost of 69 pesos per month.

On numerous occasions, Carlos Slim Helú, director of América Móvil Daniel Hajj, CEO of the company have commented that these services pass by the internet and by not using the telecommunications networks is a matter of "ones and zeros" that are transformed on television.

In this way justify that does not violate its title of concession that forbids them to offer video and audio restricted, and in June, the Federal Institute of Telecommunications (IFT) confirmed that Telmex is not in violation of its lease with One TV because it is an internet portal.

The strategy has worked for the company, in the second quarter of 2016, Clear Video, it had more than a quarter of the 5.6 million subscribers of pay television by internet, with 28.7% placing it in second site, only below that of Netflix, which has 68.9%, according to figures from The Competitive Intelligence Unit (CIU).

The consulting firm eMarketer indicated that the OTT in Mexico closed 2015 income for 276 million dollars, a figure that will increase 18% by 2018 when it is estimated to reach 454 million dollars.

Competition’s afraid of the giant. Companies-to-air television and pay television have been inconformado with the possibility of Telmex offering television restricted because as soon as it is authorized by this possibility, they may provide the service to its more than 20 million customers who have dual play, that is to say, fixed telephony and internet, with the company.

Also, it is possible that the 73.1 million cell phone users of America Mobile to have access to this service.

These figures exceed the 9.5 million subscribers of cable tv that has Televisa, the company that is currently dominated by the segment of triple play and pay tv.

"The strategy of public policy in the area of convergence was to strengthen Televisa to enter the world of convergence, but not so Telmex", recalled Gabriel Sosa Plata, analyst in telecommunications.

This results in a impairment of the rights of the users, because unfortunately other companies have had all these years to grow and invest more but have not reached the infrastructure that has Telmex, he added.

"In consequence, he has removed that possibility to users to have the services of triple play services in many communities of Mexico," noted the analyst.

Mexico without convergence. This country, together with Argentina, are the only countries that on a global scale who do not have convergence.

"The regulation of dominance and the dominance of Televisa Group, make it possible for Telmex to offer pay-TV because there will be no damages to the competition and yes benefits. The adverse situation of the country and the low incomes in the sector require of the authority to open all services to all operators in order to revive investment and the economy," said Jorge Bravo, analyst MediaTelecom Policy.

10 years Ago, the October 3, 2006, published the Agreement of Convergence where it established the rules that Telmex had to meet in order to offer services of restricted television, which consisted in providing interconnection, interoperability, and portability.

Sosa Plata said that the Agreement of Convergence was created in order to have convergence and all of the companies could offer the services that will be technically possible to deliver to the users.

In 2008, Telmex requested a couple of occasions the access to the pay tv service; however, the Federal Telecommunications Commission (Cofetel) has not responded so in 2010 the company asked to implement the affirmative ficta to not have an answer and was granted to provide the service.

A year later, the SCT declined to Telmex the possibility of access to the restricted television arguing that he had not complied with the Agreement of Convergence.

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