Synopsis
Into 2011, with a population of around 115 million and a fixed-line teledensity of less than 20%, 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 over 80% market share and the mobile market by Telmex’s sister company América Móvil (Telcel), with over 70% market share. Thus a CFC investigation into the fixed, mobile and broadband sectors has determined that Telmex’s dominance warrants further regulation in certain sectors. Despite these and other proposed reforms of the sector and of antitrust laws, Mexico remains the last OECD yet to unbundle its local loop. This report provides statistics for the country’s fixed-line and digital television markets as well as a regulatory overview.
Key Developments:
Top economic priorities remain reducing poverty and creating jobs in the lead up to elections in 2012; fixed-line teledensity languishes below 20%; local loop unbundling still awaiting approval; local telephony costs remain the highest in OECD countries; 25% growth in pay TV subscriptions and increased interest in triple-play services
Companies covered in this report include:
Telcel; Movistar; Iusacell; Teléfonos de México (Telmex); Axtel; Alestra; Maxcom and Marcatel.