By Anthony Harrup
MEXICO CITY--Mexican President Enrique Peña Nieto gave his
backing Thursday to the country's newly created telecommunications
regulator after broadcaster Grupo Televisa SAB legally challenged
the regulator's authority to order the free distribution of its
channels on pay-television systems.
The Federal Telecommunications Institute, or IFT, sought the
intervention of the president after a Mexico City judge notified
the institute this week that it doesn't have the power to order the
free transmission of Televisa channels, in a case that the
broadcaster brought in 2011 against satellite TV competitor Dish
Mexico.
Presidential spokesman Eduardo Sánchez said Mr. Peña Nieto
decided to take the case to the Supreme Court at the IFT's request,
since the free distribution of broadcast channels is a vital
element in the telecommunications and media overhaul passed last
year.
The Constitution says the IFT, and not a local judge, should
decide on transmission of content, Mr. Sanchez said.
The court notification led the IFT on Wednesday to postpone a
decision on guidelines for the implementation of so-called "must
carry" and "must offer" rules, under which broadcasters must make
their channels available free to cable and satellite-TV operators
and pay-TV providers must distribute the channels to their
customers.
The IFT would be an interested third party in the case between
the federal government and the rulings by the judge.
The decision to support the IFT's request, more than a legal
statement is a political statement in favor of last year's
telecommunications overhaul, said Jorge Negrete, head of
consultancy Mediatelecom Policy & Law.
"It's saying to Televisa and those who promoted the ruling that
the reform is for real," he added.
A Televisa spokesman said the company had no immediate
comment.
Dish Mexico, a joint venture between Mexico's MVS Comunicaciones
and EchoStar Corp. of the U.S., said Thursday it will call on the
IFT to continue working on the "must carry" and "must offer"
rules.
Dish Mexico, which has around 2.5 million satellite TV
subscribers, competes directly with Televisa's Sky Mexico satellite
service. Televisa is the country's biggest broadcaster, and the
leading pay-television provider with satellite and cable
operations.
Dish last year began carrying channels of Televisa and the
country's No. 2 broadcaster TV Azteca on grounds that the
constitutional amendment allowed it.
The IFT was created last year under a telecommunications
overhaul aimed at increasing competition in the country's
telecommunications and broadcast markets. It has the power to
determine dominant companies--specified as those with market shares
above 50%--and to set measures to establish competitiveness.
Measures could include special rules to curtail the advantages of
dominant players--even forced asset sales if deemed necessary.
Televisa, along with billionaire Carlos Slim's
telecommunications company America Movil SAB, are being
investigated for dominance in their respective markets by the
IFT.
Write to Anthony Harrup at anthony.harrup@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires