Mexico Awards Two TV Networks to Local Media Tycoons

Mexico Awards Two TV Networks to Local Media Tycoons

Licenses were awarded to increase competition in a market dominated by Grupo Televisa and Azteca

By Juan Montes
Updated March 11, 2015 9:51 p.m. ET

MEXICO CITY—Mexico awarded Wednesday two new national broadcast networks to two lesser-known local media tycoons, in an effort to increase competition in a market dominated by the longstanding TV duopoly of Grupo Televisa and Azteca.

After a long auction process, the telecom regulator said the new TV networks will be licensed to Grupo Radio Centro, one of the country’s biggest radio broadcasters led by Francisco Aguirre, and Grupo Imagen of Olegario Vázquez, who also owns Mexican newspaper Excelsior, several radio stations and regional pay-TV channels.

“This has been an unprecedented process to increase competition and pluralism” in the Mexican TV market, the head of the telecom regulator Gabriel Contreras told reporters after announcing the winners.

The auction generated great expectations as it was the first time Mexico has auctioned licenses to operate new national TV networks. But the outcome disappointed many experts, as only two companies bid and the winners aren’t seen as strong competitors in the short term.

More:
http://www.wsj.com/articles/mexico-awards-two-tv-networks-to-local-media-tycoons-1426123082