Mexican cable TV operator Megacable will start offering mobile services during the third quarter, thanks to the partnership with Telefonica Mexico’s network. The new deal with the Spanish giant will likely be welcomed by Mexican regulators, which want to see an increased competition in the country’s mobile and fixed-line markets, currently dominated by America Movil.
Speaking at a conference last week, Megacable’s CEO Enrique Yamuni said he expects to add 100,000 users in the first year by packaging mobile services with its own TV, Internet and fixed-line services.
“It is an additional option that we can offer the customer [but] It is not a business that will dramatically lift our cash flow or operating profit,” he added.
This isn’t Mrgacable’s first partnership deal with Telefonica, though. They have also teamed up to bid for a fiber-optic network being auctioned by Mexico’s government. The plan is to begin offering services in the first half of next year.
Just recently, the company posted a 21% jump in first-quarter profit and a 7% rise in revenues.
[Via: MobileBusinessBriefing]