Mexico - Broadband and Internet Market - Overview, Statistics and Forecasts

Synopsis

Broadband is one of the highest growth sectors in Mexico’s telecommunications market. Nevertheless, the market suffers from a lack of competition, with Telmex still accounting for the lion’s share of ADSL subscribers. The main cable TV providers, Megacable, Cablemás and Cablevisión, have begun to incentivise the purchase of triple play bundles of cable TV, broadband and telephony, and as a result their broadband subscriber base continued to enjoy healthy growth through 2010 and into 2011. Nevertheless, there is significant scope for additional growth as Mexico’s broadband penetration is less than half of the OECD average while its broadband prices are amongst the highest in the OECD. This report provides an overview of Mexico’s broadband and internet market, accompanied by relevant statistical data and broadband forecasts to 2016.

Key Developments:

Low broadband penetration around 13% well below the OECD average; ADSL remains the most popular form of broadband internet access at 75%; Telmex leads with a 75% ADSL market share; cable operators report lower churn due to triple-play services; Smart Grid deployments to gather pace into 2012; LTE looms over further substantial WiMAX investment

Companies covered in this report include:

Telmex; Megacable; Cablemás; Cablevisión; Maxcom; Sistemas Interactivos de Telecomunicaciones (SIT); Axtel; Megafón; InterCable; CFE

Table of Contents

• 1. Synopsis
• 2. Internet market
  • 2.1 Overview
  • 2.2 Internet statistics
    • 2.2.1 Internet and broadband statistics
• 3. Broadband market
  • 3.1 Overview
  • 3.2 Asymmetrical Digital Subscriber Line (ADSL)
    • 3.2.1 Prodigy Infinitum (Telmex)
  • 3.3 Cable broadband
    • 3.3.1 Megacable
    • 3.3.2 Cablemás
    • 3.3.3 Cablevisión
  • 3.4 Wireless broadband
    • 3.4.1 WiFi
    • 3.4.2 Early WiMAX developments
  • 3.5 Internet via satellite
  • 3.6 Utilities broadband
    • 3.6.1 Utilities communications
    • 3.6.2 Smart grid technology
  • 3.7 Triple play and VoIP developments
• 4. Forecasts
  • 4.1 Broadband forecasts
  • 4.2 Notes on scenario forecasts
• 5. Related reports

• Table 1 – Internet users, annual change and penetration rate - 2000 – 2012
• Table 2 – Internet subscribers by access technology – 2000 - 2011
• Table 3 – Location of computer use - 2005 - 2010
• Table 4 - Prodigy Infinitum ADSL subscriber lines and annual change – 2002 – 2011
• Table 5 – Megacable cable modem subscribers and annual change – 2001 – 2011
• Table 6 – Megacable internet ARPU – 2007 - 2011
• Table 7 – Cablemás cable modem subscribers and annual change – 2002 – 2011
• Table 8 – Cablemás broadband ARPU and churn – 2006 - 2010
• Table 9 – Cablevisión cable modem subscribers and annual change – 2002 – 2011
• Table 10 – Cable VoIP subscribers of major providers – 2006 - 2011
• Table 11 – Forecast fixed broadband subscribers and penetration rate – lower growth scenario – 2011 - 2016
• Table 12 – Forecast fixed broadband subscribers and penetration – higher growth scenario – 2011 - 2016

• Chart 1 – Internet users and penetration rate – 2000 – 2012
• Chart 2 – Prodigy Infinitum ADSL subscriber lines and annual change – 2002 – 2011
• Chart 3 – Megacable cable modem subscribers and annual change – 2001 – 2011
• Chart 4– Cablemás cable modem subscribers and annual change – 2002 – 2010
• Chart 5– Cablevisión cable modem subscribers and annual change – 2002 – 2011

• Exhibit 1 – Triple play case study – Megacable