Synopsis
Mexico’s growth in fixed lines has been steadily declining over the last decade, from 13% in 2000 to zero growth in 2009. Thus fixed-line teledensity is stagnating at approximately 18.5%. In addition, there remain significant disparities in fixed-line penetration between urban and rural areas. Telmex still dominates the fixed-line market with around 85% of lines and investment and competition remains stifled by the fact that Mexico is the last country in the OECD yet to unbundle its local loop. In addition, VoIP is rapidly gaining popularity although its growth will remain constrained by relatively low broadband penetration. Regulatory reform may be on the horizon, with the regulator recently ruling Telmex to have market dominance thus opening the way for potentially tougher company-specific regulations. This report provides brief profiles of the main fixed-network operators, together with statistical data, subscriber forecasts and an overview of Mexico’s telecom infrastructure.