Mexican watchdog sets conditions for Time Warner-AT&T merger
Details
Juan Fernandez Gonzalez
| 24 August 2017

The Instituto Federal de Telecomunicaciones (IFT) has given the green light to the merger between Time Warner and AT&T on a Mexican level, but the deal must meet certain conditions.

Unlike in other Latin American countries, AT&T does not own a full pay-TV operation in Mexico, as it shares Sky with Televisa, which is still the main shareholder of the satellite TV operator. However, according to the IFT, Time Warner provides and distributes its entire channel and content portfolio in Mexico through Turner, HBO and Warner.

“The merger would allow AT&T to develop video services through its several platforms, including the mobile networks, which could drive to increasing demand of mobile broadband and improving use of its network,” pointed out the telecoms authority.

According to the IFT, the merger would also hinder the competition, as AT&T/TW would be able to establish new entry barriers for other pay-TV companies and exchange privileged information with Televisa in terms of content and network commercialisation.

The IFT’s reasoning is similar to the arguments of Brazil’s antitrust agency, which on Monday recommended to veto the merger due to the negative effects it would have on competition.

Despite its concern, the IFT has decided to green light the merger in Mexico, but has issued a set of conditions for the resultant company.

Sky Mexico and the new company will have to maintain separate boards and executive teams, while HBO will continue to operate as a separate company regarding pay-TV channel licensing.

In addition, Timer Warner’s units will be forced to listen to all requests from Mexican pay-TV providers and negotiate competitive conditions with them.

Lastly, the resultant company will have to meet IFT’s requirements with regard to reporting and verification.