Last updated: 9 Jul 2012 Update History
Report Status: Archived
Report Pages: 61
Analyst: Henry Lancaster
Publication Overview
This report provides a comprehensive overview of trends and developments in Mexico’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:
Key developments:
Fixed-line teledensity continues to fall; 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; cable industry calls for third TV network to compete with Televisa; 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; regulator withdraws fine against Telcel relating to MTRs; Televisa buys a 50% stake in Iusacell but merger rejected by Federal Competition Commission over FTA TV competition issues; América Móvil develops m-payment platform with banks; regulator considers auctioning blocks of 15MHz in the 700 MHz band; 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; government’s CompuApoyo initiative targets 1.7 million homes for computers and broadband access; regulator’s market data to March 2012; telcos’ financial and operating data to Q1 2012; market developments to mid-2012.
Companies covered in this report include:
Telcel, Movistar, Iusacell, Nextel Mexico, Televisa, Globalstar, Unefón, Telefónica, Telmex, Megacable, Cablemás, Cablevisión, Maxcom, Sistemas Interactivos de Telecomunicaciones (SIT), Axtel, Megafón, InterCable, CFE, Alestra, Maxcom, Marcatel.
Researcher:- Henry Lancaster
Current publication date:- July 2012 (11th Edition)
Executive Summary
BuddeComm’s annual publication, Mexico - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Latin America’ largest countries. The report includes the regulator’s market data to the first quarter of 2012, telcos’ financial and operating data to March 2012, and market developments into mid-2012.
Economic background
Mexico’s economy was severely affected by the financial difficulties of 2008/9, though it has proved more resilient than others in its recovery. Economic priorities for the new government elected in mid-2012 are centered on reducing poverty and creating jobs, as well as upgrading infrastructure, modernising labour laws, and fostering private investment in the energy sector. The OECD predicted that in 2013 Mexico’s economy would grow 3.8%, following growth of 3.6% in 2012, 4% in 2011 and 5.5% in 2010. The Bank of Mexico forecasted GDP growth at between 3.2% and 4.2% for 2012.
Telecom market overview
Growth in the telecoms market has long outpaced broader economic growth, driven primarily by the mobile and broadband sectors. Growth has increased steadily since 2010 despite ongoing economic difficulties, and investment opportunities are strong during the next few years. There remain regulatory limitations which have restricted effective competition in both the broadband and fixed-line sectors. However, efforts in 2012 have addressed some of the limitations, consolidated some powers with the regulator.
Mobile market
Mexico boasts the second largest mobile market in Latin America after Brazil. The number of subscribers overtook fixed-line users as early as 2000, and though growth has slowed in recent years in response to higher penetration the focus has shifted to consumer use of mobile data. To this end the major players are looking to capitalise on emerging LTE technology and the exploitation of a range of spectrum. Addition spectrum to be auctioned in the 700MHz band will help develop mobile broadband connectivity in rural areas of the country. The market remains dominated by Telcel, which has been censored by the regulator for overcharging competitors on interconnection rates.
Key telecom parameters – 2010; 2012
Sector |
2010 |
2012 (e) |
Subscribers by sector (million): |
||
Fixed broadband subscribers |
15.0 |
22.0 |
Mobile broadband |
2.7 |
10.5 |
Mobile phone |
90.6 |
102.8 |
Fixed-line telephony |
19.9 |
19.2 |
Penetration by sector: |
||
Fixed broadband |
10.5% |
15.5% |
Mobile |
81% |
89% |
Fixed-line |
17.9% |
17.4% |
(Source: BuddeComm)
Market Highlights
This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Mexico. It provides further information on:
Data in this report is the latest available at the time of preparation and may not be for the current year.
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