Synopsis
With a population of around 115 million and a fixed-line teledensity of around 17%, Mexico’s telecom sector retains significant potential for growth over the next 5-10 years. The fixed-line market is still dominated by incumbent Telmex, with about 80% market share, while the mobile market is dominated by Telmex’s sister company Telcel, both being owned by América Móvil. The regulator has determined that Telmex’s dominance warrants further regulation in certain sectors, and the company has been fined for obstructing interconnection to other operators. Significant reforms in 2013 aim to set up a new regulator, remove barriers to foreign investment and reduce the market share of the dominant operators. These reforms will go far to making Mexico’s telecom market more competitive. This report provides statistics on Mexico’s fixed-line and digital TV markets, as well as an overview of regulatory developments.
Key Developments:
Local loop unbundling awaiting approval; local telephony costs remain the highest in OECD countries; Google TV launches with Sony; 25% growth in pay TV subscriptions and increased interest in triple-play services; government proposes sweeping regulatory changes and new telecom regulator; BlackRock increases stake in América Móvil; cable industry calls for third TV network to compete with Televisa; Telmex fined for failing to provide interconnection; Mexsat Bicentenario satellite launches; Cablemás and América Móvil launch VoD services; regulator approves interconnection cost model to 2014; América Móvil makes bid to buy remaining shares in Telmex; regulator’s market data update to February 2013; telcos’ financial and operating data to Q1 2013; market developments to May2013.
Companies covered in this report include:
Telcel; Movistar; Iusacell; Teléfonos de México (Telmex); Axtel; Alestra; Maxcom and Marcatel.
