Mexico - Mobile Market - Overview, Statistics and Forecasts

Synopsis

Following a slowdown in the Mexican mobile market in 2009, the sector recovered slightly during 2010 as evidenced by a 9% increase in mobile subscribers compared with 7% in 2009. Subscriber growth is expected to remain in single figures during 2011, largely due to penetration rates exceeding 80%.

While Telcel still dominates market share, a decision by the competition regulator in early 2010 to restrict the operator’s dominance held the promise of more stringent regulation in favour of Telcel’s competitors. Accordingly, in early 2011 the competition regulator fined Telcel the maximum levy of 10% of its assets for engaging in ‘monopolistic practices’.

Following the 3G spectrum auctions held in July 2010, increased competition is expected during 2011 with operators such as Movistar better positioned to offer mobile data services. Furthermore, as a consequence of its bidding successes at the spectrum auctions, Nextel has revealed plans to deploy a 3G wireless network, thereby increasing the competitive pressure on market leader Telcel.

This report provides an overview of Mexico’s mobile market, accompanied by relevant statistical data and subscriber forecasts to 2016. Brief profiles of the major operators including monthly ARPU figures are also provided.

Key Developments:

Mobile penetration approaches 85%; spectrum auctions in the 1.9GHz and 1.7GHz bands completed; Telcel maintains a 70% market share; Nextel enters the mobile market; Telefónica success in spectrum auctions; Televisa buys a 50% stake in Iusacell

Companies covered in this report include:

Telcel; Movistar; Iusacell; Nextel Mexico; Televisa; Globalstar; Unefón; Telefónica

Table of Contents

• 1. Synopsis
• 2. Overview of Mexico’s mobile (cell phone) market
  • 2.1 Mobile market statistics
• 3. Regulatory issues
  • 3.1 Regulatory authorities
  • 3.2 Spectrum auctions
• 4. Mobile technologies
  • 4.1 Overview
• 5. Major mobile operators
  • 5.1 Telcel
  • 5.2 Movistar
  • 5.3 Grupo Iusacell
    • 5.3.1 Unefón
  • 5.4 Nextel de México
• 6. Mobile voice services
  • 6.1 Minutes of Use (MOU)
  • 6.2 Prepaid
  • 6.3 Satellite mobile
• 7. Mobile data services
  • 7.1 SMS Text Messaging
  • 7.2 Multimedia Messaging Service (MMS)
  • 7.3 Push-to-Talk (PTT)
• 8. Forecasts
  • 8.1 Mobile market forecasts – 2011 - 2016
  • 8.2 Notes on scenario forecasts
• 9. Related reports

• Table 1 – Mobile operators, subscribers and annual change – 2010
• Table 2 – Mobile subscribers, annual change and penetration rate – 2000 - 2011
• Table 3 – Mobile market share by major operator – 2001 - 2011
• Table 4 – Telcel subscribers and annual change – 2000 - 2010
• Table 5 – Telcel churn, monthly minutes of use and ARPU – 2008 - 2010
• Table 6 – Movistar subscribers and annual change – 2001 - 2010
• Table 7 – Movistar churn, minutes of use and ARPU – 2008 - 2010
• Table 8 – Iusacell subscribers and annual change – 2000 - 2010
• Table 9 – Unefón subscribers and annual change – 2000 - 2007
• Table 10 – Monthly and yearly minutes of use and annual change – 2000 - 2011
• Table 11 – Prepaid / postpaid subscribers and annual change – 1997 - 2011
• Table 12 – Forecast mobile subscribers and penetration lower growth scenario – 2010 - 2012; 2016
• Table 13 – Forecast mobile subscribers and penetration higher growth scenario – 2010 - 2012; 2016

• Chart 1 – Mobile subscribers and penetration rate – 2000 – 2010
• Chart 2 – Telcel subscribers and annual change – 2000 – 2010
• Chart 3 – Movistar subscribers and annual change – 2001 – 2010
• Chart 4 – Iusacell subscribers and annual change – 2000 – 2010
• Chart 5 – Forecast mobile subscribers and penetration – lower growth scenario – 2010 – 2016
• Chart 6 – Forecast mobile subscribers and penetration – higher growth scenario – 2010 – 2016