The Mexican telecommunications regulator, Instituto Federal de Telecomunicaciones (IFT), placed specific obligations on Megacable after declaring it as dominant player in nine Mexican markets.
Megacable is the second largest Pay TV service in Mexico with 25% market share, according to IFT data.
San Mateo Atenco and Zinacantepec in Estado de México; León in Guanajuato; Guadalajara and Tonalá in Jalisco; Cuautlancingo and San Pedro Cholula in Puebla, Corregidora and El Marques in Queretaro, are the markets that IFT decided to regulate.
"The specific obligations imposed have the objective of encouraging greater competition by eliminating possible barriers to entry for other competitors and establishing measures in favor of end users who contract the services", according to the Mexican regulator.
The measures consists in the establishment of a retail resale wholesale market on Pay TV, eliminates time limits forced for final users and avoids other constraints that keep out free choice of any other provider.
"These measures are the result of a comprehensive and holistic analysis for defining the obligations which wants to favor Pay TV services in relevant markets and answers to best international practices", said the IFT.
As a result, Megacable assured the decision is unprecedented and presents an amparo, that is a legal recourse, against the IFT’s resolution, said the company in a press release.
“Megacable will initiate legal actions against the specific measures issued by the IFT by exceeding its powers, in the scope of the measures and in the determined Economic Interest Group, resulting in a violation of the Federal Law of Telecommunications and Broadcasting, in addition to violating the principles of legality and proportionality”.