Background and Relevance of the Companies
Grupo Televisa, a prominent Mexican media conglomerate, is in talks with AT&T to acquire the latter’s mobile operations in Mexico. This potential merger would result in a new company with 44 million access points, combining residential fixed lines and mobile users from both Izzi and AT&T. The combined entity would also inherit a robust infrastructure, including 70,000 kilometers of trunk routes and optimal spectrum for 5G services.
Context and Motivations
AT&T’s board in Dallas seeks higher profitability from its Mexican subsidiary, which has considered selling AT&T México for the second time in six years. Meanwhile, Grupo Televisa aims to strengthen its telecommunications division amidst mixed performance in broadband services via Izzi Telecom and struggling pay-TV cable and satellite operations.
Regulatory Environment
AT&T’s consideration to exit Mexico stems from the renegotiation of the USMCA and the high cost of spectrum in Mexico, which accounts for 17% of its annual revenue. Additionally, Mexico’s regulatory environment poses challenges as the state acts as an operator, promoter, and regulator simultaneously.
Current Status of Negotiations
According to sources with government access, Grupo Televisa and Cerberus fund are engaged in dialogue with AT&T regarding a potential acquisition. The discussions remain ongoing, with no definitive agreement reached yet.
AT&T’s Position in the Mexican Telecom Market
AT&T is the second most valuable telecom company in Mexico and one of the top ten mobile brands in Latin America. Its quarterly revenue amounts to $1.1 billion, with nearly 24 million customers and 185.43 MHz of radiofrequency spectrum, including 90 MHz suitable for national 4G and 5G services. AT&T also boasts the second-highest average revenue per user (ARPU) in Mexico’s mobile sector ($8) and a wholesale network supporting 45 million users with capacity for up to 100 million lines.
Potential Impact of the Merger
The combined entity would possess 19.45 million fixed access points for video, voice, and data services via cable and satellite. Televisa owns Sky and Izzi Telecom, along with local cable providers and infrastructure assets like Bestel’s 70,000 kilometers of fiber-optic networks. Adding AT&T’s 24 million mobile access points (spread across 185 MHz of frequencies) would create a company valued over $2.5 billion.
Regulatory Considerations
Should the merger occur, Mexico’s National Antimonopoly Commission (CNA) would need to address potential competition concerns. The merger could impact Movistar, a competitor, as AT&T’s network is a crucial wholesale input for Telefónica in Mexico.
Televisa’s Spectrum 5G Auction Participation
Following the merger, Televisa might participate in the CRT’s upcoming 5G spectrum auction. AT&T previously indicated reluctance to participate if spectrum prices remain high.
Televisa’s Rationale for Acquiring AT&T
Rumors suggest Televisa aims to integrate Izzi Telecom’s services fully, offering quadruple-play packages. However, Televisa has been a convergent company since 2015, merging Sky with Telmex’s network to offer broadband internet alongside video services. Izzi Telecom’s mobile offering, “Izzi Móvil,” was developed in response to competition from Megacable and Totalplay.
Key Factors in the Transaction
Industry analyst José Otero emphasizes that the merger’s success hinges on the performance of Izzi Telecom and Sky’s video services. Televisa lost 372,087 fixed residential and mobile access points in Q3 2025, negatively impacting its financial results.
Competitive Market Dynamics
A potential merger should face minimal regulatory hurdles, as both companies are complementary. Their combined market share in cellular services would not significantly alter the competitive landscape.
