UPDATE 3-Mexico's Televisa eyes Slim's mobile phone market

* Televisa could get foothold in mobile market

* Talks are latest twist in billionaire power struggle

* Televisa mobile plans with Nextel flopped last year (Adds analyst comments, background on Azcarraga, Salinas )

By Cyntia Barrera Diaz

MEXICO CITY, April 5 (Reuters) - Top Mexican broadcaster Televisa said on Tuesday it was in talks with cell phone operator Grupo Iusacell in a move that could revive its plans to enter the mobile phone market in Mexico.

The talks are the latest twist in a battle between three of Mexico's richest men over control of the communications sector in Latin America's second-largest economy.

A deal with Iusacell would put Televisa back on track to offer mobile phone services in Mexico after a deal with NII Holdings Inc's (NIHD.O) Nextel Mexico flopped last year and give it a foothold in the market led by telecommunications mogul Carlos Slim. [ID:nN09164396] [ID:nN01129898]

Iusacell and Mexico's No. 2 broadcaster, TV Azteca TVAZTCACPO.MX, are part of Grupo Salinas. Ricardo Salinas is one of the country's wealthiest men with a fortune estimated at more than $8 billion, according to Forbes.

Televisa, led by media entrepreneur Emilio Azcarraga, and TV Azteca are embroiled in a dispute with companies controlled by Slim, who owns telephone network Telmex (TELMEXL.MX) and cell phone network America Movil (AMXL.MX)(AMX.N).

Slim wants to expand into television in Mexico so his companies can offer bundled packages of video, telephone and Internet services, as he does in 16 countries where America Movil operates.

The Mexican government has so far prohibited the world's richest man -- already the biggest provider of pay television services across Latin America -- to expand into media because of concerns about competition.

Televisa has broadcast, cable, satellite, publishing and gaming businesses -- and is the main programmer for U.S. Spanish-language broadcaster Univision Communications Inc [UVN.UL] -- but lacks cell phone services to round out its offerings.

"Convergence of services. That is a theme that is driving consolidation around the world and the same thing is happening in Mexico," said analyst Kevin Roe from Roe Equity Research LLC.

Mexican daily El Universal reported on Monday that Televisa wanted to buy a large piece of Iusacell's outstanding debt currently held by Mexican financier David Martinez.

"At this time, no agreement has been reached between Televisa (TV.N)(TLVACPO.MX) and Grupo Iusacell. There can be no assurances that any agreement will be reached or the timing or terms of any such agreement, if one is reached," the broadcaster said in a brief statement.

Televisa declined to make any further comment. Martinez and Iusacell could not be reached.

BURYING THE HATCHET

Talks between Televisa and Iusacell suggest Salinas and Azcarraga may have patched things up after a rocky 2010. Salinas built his wealth with appliance chain Elektra and Banco Azteca by giving credit to low-income families. Azcarraga took over the leadership of Televisa from his father at the age of 29.

Salinas' Iusacell was seen as a key culprit in the collapse of the Televisa-Nextel Mexico deal in which the broadcaster had agreed to buy a 30 percent stake in the NII Holdings unit for $1.44 billion, subject to the acquisition of spectrum in a government auction.

Televisa and Nextel did win the controversial auction, paying a price for the spectrum critics considered extremely low. Iusacell and affiliated companies filed dozens of lawsuits in Mexican courts contesting the auction process.

Televisa and Nextel parted ways in October and a source from the broadcaster said at the time the companies were discouraged by the legal challenges.

If Televisa does buy a stake in Iusacell, it could bury the hopes of Nextel Mexico, which has said it would continue talks on collaboration with the broadcaster.

"If it is a real financial investment, a large peso investment in Iusacell and becoming a part-owner, that would preclude any material agreement with Nextel," Roe said.

Iusacell CEL.MX was under creditor protection for several months, but according to a report on Tuesday by daily newspaper Reforma, a Mexican judge has approved a debt deal between it, its controlling company and creditors.

Televisa shares slipped 0.10 percent to 59.92 pesos. Its New York-traded stock slid 0.12 percent to $25.28. (Reporting by Cyntia Barrera Diaz; editing by Gerald E. McCormick, Derek Caney and Andre Grenon)