Carlos Slim's America Movil (NYSE: AMX) may not be able to offer TV over its copper and fiber network in its native Mexico, but now it plans to leverage its broadband lines to deliver a new over the top (OTT) video service.
As reported in Bloomberg citing an unnamed source, the service provider is being cautious about any possible service rollout. It plans to wait for a regulatory decision on whether OTT video violates its current TV ban.
If it does move forward with its OTT plan, America Movil would leverage distribution unit DLA Inc. to provide users with a Netflix-like service to offer movies and television shows similar to its Ideas Entertainment program it has in Argentina and Uruguay. Ideas Entertainment offers users video subscriptions for about $5 to $10 a month and 24-hour pay-per-view movie rentals as a complement to its cable and satellite service packages.
Netflix (Nasdaq: NFLX), which made its debut in Latin America last year, and Telefonica SA offer similar services throughout the region.
Regulators have continually denied Carlos Slim from obtaining a TV license because the Mexican government believes it has not met the interconnection requirements for Mexico's competitive carriers.
- Bloomberg has this article
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