Monday, 17 October 2011
Mexico's Megacable Teams Up With Telefonica On Mobile Service | Fox Business
Mexico's Megacable Teams Up With Telefonica On Mobile Service
MEXICO CITY -(Dow Jones)- Mexican cable operator Megacable Holdings SAB (MEGA.MX) and the local unit of Spain's Telefonica SA (TEF) said Friday they have agreed to launch a joint mobile service in Mexico in an effort to gain market share in the Mexican market.
Megacable will be in harge of marketing, sales and distribution of the new venture, called Megacel, while Telefonica will provide the mobile network, the companies said. Megacel will operate as a virtual mobile network operator, or MVNO.
The companies said in a release that the new mobile service will complement Megacable's existing package that includes TV, Internet and fixed-line telephony. They didn't provide any financial details about the agreement.
Telefonica is Mexico's second-largest mobile service provider, with 20.6 million subscribers at the end of the second quarter, behind market leader Telcel, a unit of America Movil (AMX, AMX.MX), which had 67 million subscribers. Megacable is the biggest cable TV company with 1.8 million cable subscriptions, 594,000 Internet and 451,000 phone subscriptions.