Slim and Televisa went from partners to rivals: a 4-year war broke out and the purchase of AT&T Mexico could reopen it

Dish, telecommunications reform and the birth of izzi

The alliance between Telmex and Dish opened another front in the dispute between Carlos Slim and Emilio Azcárraga Jean. Since 2008, the MVS satellite television company used the Telmex commercial network to charge for its services through telephone bills. Its low-cost packages allowed it to gain customers and compete with Sky, Televisa’s pay television service.

In February 2011, Televisa reported Telmex to the Federal Competition Commission. He argued that the agreement with Dish went beyond billing and could allow Slim to indirectly participate in the video business, despite the restrictions of his concession. Telmex denied having a shareholding in Dish. For years, Televisa maintained that the alliance between Telmex and MVS-Dish was anti-competitive .

The dispute escalated into moment of closeness between Televisa and the government of Enrique Peña Nietowhich promoted the 2013 telecommunications reform. The relationship between the television station and the PRI had come under scrutiny since the 2012 presidential campaign, amid accusations of favorable coverage that Televisa rejected.

The reform created the Federal Telecommunications Institute (IFT) and, with the secondary laws of 2014, declared to América MóvilSlim’s group that brings together Telmex and Telcel, predominant economic agentsubject to special obligations. However, Telmex did not receive authorization to offer pay television.

Televisa took advantage of this scenario to reinforce its commitment to telephony and the internet. After integrating several cable companies , unified its residential offering under the izzi brandwhich began operating on November 1, 2014. Its initial package offered 10 megabits per second internet and unlimited calls to landlines and mobiles in Mexico, the United States, Canada and Europe for 400 pesos per month, which sought to attract Telmex customers.

The launch campaign made the rivalry explicit. “ Goodbye, Carlos. Hello, Izzi ” was the message with which Televisa invited users to leave traditional landline telephony, in a direct allusion to Carlos Slim and to the domain of Telmex. The new brand not only introduced a commercial offer: it turned the dispute over the customers that both groups sought to win into advertising.

This is how the waters calmed down between Slim and Televisa

He March 31, 2015, Telmex advertised again on Televisa during the Mexican team’s match against Paraguay. The commercial marked the end of four years of advertising boycott. Weeks later, Alfonso de Angoitia, director of the television station, confirmed that Grupo Carso had resumed hiring advertisements.

The truce coincided with the arrival of AT&T to the Mexican market. Televisa had sold its 50% stake in Iusacell to Grupo Salinas in September 2014. Months later, AT&T bought the telephone company and acquired Nextel Mexico, which became a new competitor of Telcel.

Under pressure from the American company, Slim needed to recover advertising presence to defend his business mobile. Thus, their companies’ advertisements returned to Televisa screens, while both groups adapted to a more competitive market.

The telecommunications reform also changed the rules. Televisa was declared a preponderant economic agent in broadcasting and was subject to measures to prevent discrimination in the sale of advertising.

The boycott ended, but the rivalry continued. Televisa promoted izzi in telephony and internet, while Slim defended the mobile market with Telcel. The dispute went from advertising vetoes to competition for customers. Thus, the conflict entered a tense calm.