The Telecommunication Industry: The Sucess of TV Azteca

Decent Essays

The markets located in these sectors that experienced high degree of market concentration are telecommunications, electric industry, television broadcasting, petroleum, beer industry, cement industry, and tortillas industry. About one or more of these iindustries in both the private and public sector has enough market power to restrict competition.
In the telecommunications market, Mexico grants almost fifty percent of the FDI for companies to provide fixed networks and services. As for the US, Congress introduced a bill that grants foreign investors access to the telecommunications market. However, the bill was held back a lot due to demands for a “reciprocity clause”. This reciprocity clause allows the Mexican telecommunications market to open up for to other countries that are trade partners with Mexico.
In the telecommunications industry, there were concerns about Televisa and TV Azteca, where they were suspected of gaining complete control over Mexico’s judiciary system as well as the legislative and regulatory systems. This gave them better advantage in the telecommunications market through using these systems to restrict competition. By August 2007, the Mexican Supreme Court ruled to eliminate the Radio and Television Law that was enacted during April 2006 to limit competition. The Court also ruled that the broadcasting companies cannot use the analog spectrum outside of the digitalization process for free. Later on, the Supreme Court made demands for a new law that

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