Ursec considers that the request "does not constitute a concentration operation that consecrates significant market power to the new consortium."
In recent days it was learned that the companies Montecable, Nuevo Siglo and TCC – the cables of the three private open television channels in Uruguay – requested authorization from the Executive Branch to merge into a single company that provides cable television and transmission service. data in Montevideo.
As reported by El Observador , the Communications Services Regulatory Unit (Ursec) has already given its approval, both in terms of defense of competition and regulation of the telecommunications market.
This with the affirmative vote of the two representatives of the ruling party on the Board of Directors: the president, Mercedes Aramendía and the vice president, Gustavo Delgado.
The report accompanying the file details the change in consumer habits in the entertainment industry in favor of streaming services and to the detriment of pay television services.
A series of national and international reports are listed there. One of the examples cited belongs to the National Telecommunications Agency of Brazil (Anatel), which carries out an analysis of audiovisual consumers in its country and suggests a new definition of a relevant market.
In that April 2024 report, it was estimated that 87% of customers corresponded to internet streaming platforms. Based on this, Anatel gave rise to a precautionary measure presented by Sky (satellite pay television operator) to stop being considered an operator with significant market power, given that its participation was less than 4%.
From there, Anatel understood that the pay television market “no longer exists, given that streaming competes with the provision of pay television services” and they are part of the same market.
A NEW RELEVANT MARKET
According to Ursec, based on investigations by the Radar group, Agesic and the regulator itself, “the reality in the entertainment market in audiovisual media in Uruguay does not differ from the situation reflected by Anatel.”
From this, says the regulator, “it can be inferred that the conclusions reached in the Brazilian market can be transferred to the Uruguayan market; interpreting this relevant market as the sum of pay television and streaming and concluding that with this new definition, pay television operators are no longer considered operators with significant market power.”
In this framework, it is considered that the operation requested by the companies Monte Cablevideo, Riselco and Tractoral to operate in a consortium the provision of television service for subscribers and data transmission in the areas for which they were duly authorized, “does not constitute a concentration operation in the audiovisual media entertainment market in Uruguay that consecrates significant market power to the new consortium,” says the document dated May 31.
Thus, for the Uruguayan regulator, “the relevant market in question is made up of the sum of pay television services plus streaming services, with the requested operation concentrating 94,222 subscribers out of a universe of 496,127 subscriptions (19%); and consequently, it would not be appropriate to deny authorization of the requested operation.”
In the case of the data transmission services market, “the petitioners would be an "entering" competitor in said market, without ties to companies that already operate in it; Therefore, it would not be appropriate to deny authorization of the requested operation.”
