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DTT Market Summary Mexico

SNL Kagan anticipates the emergence of a burgeoning DTT population in Mexico in the next Related Country & Region Profiles 10 years, following government commitment to the ATSC format and the launch of HDTV Latin America Summary services in 2007. According to government officials, DTT rollout has been slower than

expected due to the rapid rise of low-cost pay TV and partly due to broadcaster involvement in multichannel, which has made digital to air a lower priority. The market has also been Related Operators slowed by the lack of digital sets and decoders, which are unaffordable for homes Mexico that cannot afford pay TV. As such, we estimate the free-to-air service will have limited Maxcom TV delivery near-term, reaching 477,300 households by end-2012 before gaining steam to grow S. A. to 14.4 million by 2021. MVS Televisión S.A. Mexico Regulatory body Cofetel is attempting to jumpstart the DTT through a tender won by provider Teletec in November 2012, which will provide equipment and installation services to the first Related Profile Documents areas slated for analog shutoff including Baja and Tijuana. As of February 2013, Teletec Sky Mexico noted it had already installed 48,000 DTT systems in its first-phase regions, and is set to Programming (As of 6/4/2013 receive another 200,000 units to be installed by early 2013. According to the ASO schedule May 2013) set by Cofetel, the first blackout areas will include Mexicali, Baja California, Ciudad Juarez, Maxcom Mexico Nuevo Laredo, Reynosa, Matamoros, Tamaulipas, and Nuevo Leon with an Programming (As of 6/4/2013 ambitious target of November 2013, followed by , and other central May 2013) areas by November 2014 and the rest of Mexico by 2015. However, SNL Kagan believes Megacable Programming (As of 5/8/2013 ASO will be completed closer to 2017. April 2013) Cablevision Mexico Programming (As of 2/18/2013 January 2013) Maxcom Tracking (As of Q3 2012) 2/15/2013 Megacable Tracking (As of Q3 2012) 1/2/2013 MASTV-DISH Mexico Programming (As of 12/11/2012 November 2012) Cablevision Mexico Tracking (As of Year- 10/5/2012 End 2011) Cablemas Mexico Programming (As of 3/21/2011 February 2011)

HD DTT Market Summary

HDTV is expected to penetrate DTT households quickly as HD broadcasts have already been launched by Televisa and TV Azteca. HD DTT households are expected to account for 14.6% of all DTT homes by 2012, resulting in 69,720 HD DTT users; however, most of these homes are expected to also take pay TV. HD DTT households are expected to reach 10.1 million by 2021 following the introduction of lower-priced HD set-top boxes and displays with integrated HD tuners.

Source: SNL Financial | Page 1 of 2 DTT Market Summary Mexico

Last updated on 3/6/2013 © 2013 SNL Kagan, a division of SNL Financial LC, estimates. All rights reserved.

Source: SNL Financial | Page 2 of 2