AT&T Mexico Won't Solve Televisa's Challenges Fighting Fierce Broadband Competition

We expect Televisa to eke out growth in the coming years while keeping a tight grasp of operating costs and capital investment. Still, it doesn’t entirely control the path forward, operating in an irrationally competitive Mexican broadband market that would benefit greatly from consolidation. We don't believe acquiring a stake in AT&T's Mexican wireless business solves Televisa's weak competitive position, but it could lead to further consolidation. This prospect is highly uncertain, though, as Megacable and others have rejected past merger attempts.