Televisa mounts mobile challenge to America Movil

Mexican broadcaster Televisa launched an MVNO service today (1 June), three months earlier than scheduled, as it looks to tap into increasing demand for low-prices caused by the Covid-19 (coronavirus) pandemic, Reuters reported.

The company, operating the MVNO under the brand Izzi, will use infrastructure from shared network operator Altan Redes, and offer mobile service to its existing cable and home internet customers.

Izzi’s CEO Salvi Folch revealed the move in an interview with Reuters, stating it expected the economic turmoil caused by the pandemic would boost demand.

“The pandemic made us accelerate our plans,” Folch told the news outlet, adding: “People will have to spend less on some services…we view it as an opportunity”.

Competition
The move is significant as it sees the country’s major broadcaster mount a challenge to long-time dominant operator America Movil, owned by Mexican billionaire Carlos Slim.

Indeed, Mexico has looked to reduce the Slim’s stranglehold on the market for some time, passing reforms in 2013 which paved the way for heavyweights AT&T and Telefonica [1] to enter the market.

Altan Redes launched in 2018 [2] to offer wholesale network services to non-traditional telecoms players.

However, data from Mexican regulator IFT indicates America Movil still holds two-thirds of mobile connections in the country.

Izzi will offer mobile services at MXN250 ($11.35) with unlimited data, which Folch claimed was 80 per cent cheaper than America Movil.

The company will also consider making the service available to customers which do not take up their cable and internet services in the future.

[1] https://www.mobileworldlive.com/featured-content/top-three/att-telefonica-increase-mexico-spectrum-holdings/
[2] https://www.mobileworldlive.com/featured-content/top-three/mexican-wholesale-4g-network-opens-for-business/

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