Echostar's Dish enters Mexico City

Competes with dominant satcaster Sky Mexico

MEXICO CITY -- Sky Mexico no longer has Mexico City to itself.

Echostar-owned Dish Mexico entered the giant Mexico City market Sunday, pitting it head to head against the nation's dominant satcaster.

Dish launched operations last year in several small cities under an alliance with Mexican telecom company MVS Comunicaciones. Since then, it has expanded into the nation's largest markets, including Monterrey, Guadalajara and the recently added greater Mexico City area, with a population of about 18 million.

Prior to the alliance, Televisa-owned Sky was Mexico's sole satellite TV operator. Currently, Sky has more than 1.7 million subscribers nationwide and it's Televisa's No. 2 revenue generator. Dish is looking to cut into Sky's market share by offering a more affordable basic service package. MVS declined to disclose Dish Mexico's initial subscriber numbers.