Company Trend Analysis - Dish's Double Play No Game-Changer - FEB 2018
BMI View: Dish 's double play offer with FreedomPop will not cause significant disruption to the Mexican market. The lack of synergy between satellite pay-TV and freemium mobile services means this strategy will struggle to gain significant traction .
Dish Mexico has partnered with mobile virtual network operator (MVNO) FreedomPop to provide mobile services to its satellite pay-TV subscribers. Mobile services will be provided under FreedomPop's standard 'freemium' model, where customers are provided basic low-value packages for free, but are charged for anything they consume over the allowance. Customers will be billed for their mobile services through Dish. The service will be made available in 16 states by end-17 and in the rest of the country by Q1 2018.
We expect this service will not have a significant impact on the Mexican telecoms market. Dish's double play is minimal, considering that Mexico's operators are moving towards a fuller convergence paradigm. America Movil's dominance in the mobile and wireline segments - often with market shares of over 60% - means the regulator IFT has been holding back on allowing convergent packages for now, on grounds that the incumbent would become too dominant as one unit. Despite the current position of the regulator, the telecoms industry globally has been moving towards convergence models, and we expect the IFT to cautiously allow multi-play strategies in the medium term.
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|Mexico - Mobile and 3G/4G Forecasts|
|f = BMI forecast. Source: Operators, IFT, BMI|