América Móvil's Telmex has developed an over-the-top (OTT) strategy to offer triple-play services.
The telco is challenging the market's regulator, Instituto Federal de Telecomunicaciones (IFT), with a triple-play offer which is being widely advertised across the country. All the different options of the Infinitum package include Internet, fixed voice services and unlimited access to Claro video, América Móvil's OTT service.
Claro video includes both a free video-on-demand (VOD) catalogue and the latest Hollywood premieres under pay-per-view, a formula that has proved successful across Latin America, where América Móvil has become the second largest OTT provider after Netflix.
However, América Móvil's dominant position in Mexico has driven the IFT to set asymmetric regulations within the market.
Through Telmex and Telnor, Carlos Slim's telco owns over 60% of the broadband market and the country's cable infrastructure. In order to maintain competition, the IFT has banned América Móvil from getting a pay-TV licence and forced the telco to give other operators access to its cable network.
However, América Móvil has appealed against these rules several times, and entering the pay-TV market has become one of its most important short-term goals.
