Mexico's Megacable gives up on idea of offering its own mobile phone service

When it comes to cable and mobile wireless, things aren't much different south of the border. Mexico's biggest cable TV provider, Megacable, has withdrawn from the government's planned mobile phone airwaves auction because it says offering its own wireless service wouldn't be financially viable.

This leaves Megacable in a position to resell service from an existing mobile operator such as Telefonica which would then offer Megacable's TV and wireless to its customers. Raymundo Fernandez, Megacable's COO, opened up that possibility during a Feb. 26 conference call.

The May 25 auction, meanwhile, will still go on with Grupo Televisa, which controls three cable operators in Mexico; Axtel SAB, the country's second largest land line company; VDT Communicaciones; America Movil; Telefonica and Grupo Iusacecell all participating.

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