And, while less studied, advancement of the subscription television services can be divided in stages as well. As it happened in the United States, the early stage was characterized by small local enterprises. The proliferation of pay-TV plants and the new democratic tones of Latin American governments then led to the recognition of new channels of communication and the second stage of development. Most countries living this stage regulated the sector, sometimes barring and sometimes fostering foreign participation. The entry of foreign strategic investors into a Latin American country that is opening its telecommunications market has traditionally occurred in a pan-regional mode and as a strategic alliance strategy.
Companies sometimes undergo negotiations with more than one partner before finding the right fit.
Before the commencement of competitive services, two or more strategic alliances that would otherwise compete in the opening market may combine to create a larger and more powerful presence in the marketplace. Illustratively, American satellite company Hughes Electronics sought an association with Brazilian Globo TV before associating itself to Abril TV and finally appropriating all Brazilian operations. The most powerful media conglomerates from Brazil and Mexico decided, on the other hand, to cooperate in a pan-regional satellite distribution system. Strategic alliances, nevertheless, do not reduce the complexity of the process of getting involved in a variety of local markets. There are several legal and administrative steps to consider.