2012 Mexico - Telecoms, IP Networks, Digital Media and Forecasts

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:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and Digital Media;
  • Broadband market forecasts for selective years to 2020.

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

Mexico’s regulator consolidates authority in bid to develop competition

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

  • The regulator in mid-2012 confirmed that the DTTV must be completed by the end of 2015. It also called for Congress to approve subsidy mechanisms to facilitate the switch from analogue broadcasts.
  • In mid-2012 the cable industry called for the creation of a third TV network to provide competition to the dominant broadcaster Televisa. The National Cable Telecommunications Chamber called for the government to auction spectrum to create a new broadcast network, following the failure to agree on a spectrum auction plan earlier in the year.
  • In mid-2012 the regulator announced that it was considering tendering blocks of 15MHz for three operators in the 700 MHz band.
  • América Móvil signed an agreement in early 2012 with banks to develop an -payment platform, with a view to launching commercially in early 2013.
  • The Energy Regulatory Commission has been awarded a US$405,000 grant from the US government’s Trade and Development Agency (USTDA) to support a regulatory framework for smart grid implementation. Mexico plans to invest billions of dollars over the next decade to improve electricity stability and reliability, and incorporate renewable energy resources.
  • The government’s recently introduced reforms to deregulate fibre networks will encourage overall investment in developing and building the national telecoms infrastructure in coming years.

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:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Key Statistics
  • 2. Country Overview
    • 2.1 Background
    • 2.2 Mexico’s economy
  • 3. Telecommunications Market
    • 3.1 Background
    • 3.2 Overview
  • 4. Regulatory Environment
    • 4.1 Overview
      • 4.1.1 Privatisation
      • 4.1.2 Deregulation
      • 4.1.3 Foreign investment rules
    • 4.2 Regulatory authorities
  • 5. Fixed Network Market
    • 5.1 Background
    • 5.2 Overview
    • 5.3 Fixed-line statistics
  • 6. Broadband Market
    • 6.1 Overview
    • 6.2 Government support
    • 6.3 Broadband statistics
    • 6.4 Access
    • 6.5 Asymmetrical Digital Subscriber Line (ADSL)
      • 6.5.1 Prodigy Infinitum (Telmex)
    • 6.6 Cable broadband
      • 6.6.1 Megacable
      • 6.6.2 Cablemás
      • 6.6.3 Cablevisión
    • 6.7 Fibre developments
    • 6.8 Wireless broadband
      • 6.8.1 WiFi
      • 6.8.2 Early WiMAX developments
    • 6.9 Mobile broadband
    • 6.10 Internet via satellite
    • 6.11 Utilities broadband
      • 6.11.1 Utilities communications
      • 6.11.2 Smart grid technology
    • 6.12 Triple play and VoIP developments
  • 7. Digital Media / Digital Economy
    • 7.1 Digital TV broadcasting
      • 7.1.1 Overview
      • 7.1.2 Cable TV (CATV)
      • 7.1.3 Direct-to-Home (DTH) Satellite TV
      • 7.1.4 Pay TV statistics
      • 7.1.5 Digital Terrestrial TV (DTTV)
      • 7.1.6 Other developments
  • 8. Mobile Communications
    • 8.1 Overview of Mexico’s mobile (cell phone) market
      • 8.1.1 Mobile market statistics
    • 8.2 Regulatory issues
      • 8.2.1 Regulatory authorities
      • 8.2.2 Spectrum auctions
      • 8.2.3 Mobile Termination Rates (MTRs)
    • 8.3 Mobile technologies
      • 8.3.1 Overview
    • 8.4 Major mobile operators
      • 8.4.1 Telcel
      • 8.4.2 Movistar
      • 8.4.3 Grupo Iusacell
      • 8.4.4 Nextel de México
    • 8.5 Mobile voice services
      • 8.5.1 Minutes of Use (MOU)
      • 8.5.2 Prepaid
      • 8.5.3 Satellite mobile
    • 8.6 Mobile data services
      • 8.6.1 SMS Text Messaging
      • 8.6.2 Multimedia Messaging Service (MMS)
      • 8.6.3 Push-to-Talk (PTT)
      • 8.6.4 Long-term Evolution (LTE)
      • 8.6.5 M-payment services
  • 9. Forecasts
    • 9.1 Broadband forecasts
    • 9.2 Mobile market forecasts – 2011 - 2016
  • 10. Glossary of Abbreviations
  • Table 1 – Country statistics – 2012
  • Table 2 – Telecom revenue and investment statistics – 2009 - 2011
  • Table 3 – Telephone network statistics – 2012
  • Table 4 – Internet user statistics – 2012 (e)
  • Table 5 – Broadband statistics – 2011
  • Table 6 – Mobile statistics – 2012 (e)
  • Table 7 – National telecommunications authorities
  • Table 8 – Telecom market growth – 2004 - 2012
  • Table 9 – Telecom sector investment – 1996 - 2012
  • Table 10 – Fixed lines in service, annual change and teledensity – 1996 - 2012
  • Table 11 – Telmex fixed-line RGUs – 2011- 2012
  • Table 12 – Internet users and annual change - 2000 – 2012
  • Table 13 – Internet penetration - 2000 – 2012
  • Table 14 – Internet subscribers by access technology – 2000 - 2012
  • Table 15 – Location of computer use - 2005 - 2010
  • Table 16 – Broadband penetration - 2005 - 2013
  • Table 17 - Prodigy Infinitum ADSL subscriber lines and annual change – 2002 – 2012
  • Table 18 – Cable modem internet subscribers – 2004 – 2012
  • Table 19 – Megacable cable modem subscribers and annual change – 2001 – 2012
  • Table 20 – Megacable internet ARPU – 2007 - 2012
  • Table 21 – Megacable revenue by sector – 2010 - 2012
  • Table 22 – Cablemás cable modem subscribers and annual change – 2002 – 2011
  • Table 23 – Cablemás broadband ARPU and churn – 2006 - 2010
  • Table 24 – Cablevisión cable modem subscribers and annual change – 2002 – 2012
  • Table 25 – Mobile broadband subscribers – 2010 - 2013
  • Table 26 – Cable VoIP subscribers of major providers – 2006 - 2011
  • Table 27 – Cable TV subscribers – 1998 - 2013
  • Table 28 – Megacable TV subscribers – 2010 - 2012
  • Table 29 – Satellite TV subscribers – 1998 - 2013
  • Table 30 – Pay TV subscribers by technology, annual change and penetration rate – 1998 - 2011
  • Table 31 – Mobile subscribers, annual change and penetration rate – 2000 - 2013
  • Table 32 – Mobile market share by major operator – 2001 - 2012
  • Table 33 – Telcel subscribers and annual change – 2000 - 2012
  • Table 34 – Telcel churn, monthly minutes of use and ARPU – 2008 - 2012
  • Table 35 – Telcel wireless revenue – 2010 - 2012
  • Table 36 – Movistar subscribers and annual change – 2001 - 2012
  • Table 37 – Movistar churn, minutes of use and ARPU – 2008 - 2012
  • Table 38 – Movistar financial data – 2008 - 2012
  • Table 39 – Iusacell subscribers and annual change – 2000 - 2010
  • Table 40 – Unefón subscribers and annual change – 2000 - 2007
  • Table 41 – Monthly and yearly minutes of use and annual change – 2000 - 2011
  • Table 42 – Prepaid / postpaid subscribers and annual change – 1997 - 2011
  • Table 43 – Forecast fixed broadband subscribers and penetration rate – lower growth scenario – 2011 – 2016; 2020
  • Table 44 – Forecast fixed broadband subscribers and penetration – higher growth scenario – 2011 – 2016; 2020
  • Table 45 – Forecast mobile subscribers and penetration lower growth scenario – 2011 - 2012; 2016
  • Table 46 – Forecast mobile subscribers and penetration higher growth scenario – 2011 - 2012; 2016
  • Chart 1 – Internet users and penetration rate – 2000 – 2012
  • Chart 2 – Internet subscribers by access technology – 2000 – 2012
  • Chart 3 – Prodigy Infinitum ADSL subscriber lines and annual change – 2003 – 2012
  • Chart 4 – Megacable cable modem subscribers and annual change – 2001 – 2012
  • Chart 5– Cablemás cable modem subscribers and annual change – 2002 – 2011
  • Chart 6– Cablevisión cable modem subscribers and annual change – 2002 – 2012
  • Chart 7 – Mobile subscribers and penetration rate – 2000 – 2013
  • Chart 8 – Telcel subscribers and annual change – 2000 – 2012
  • Chart 9 – Movistar subscribers and annual change – 2001 – 2012
  • Chart 10 – Movistar financial data – 2008 – 2012
  • Chart 11 – Iusacell subscribers and annual change – 2000 – 2010

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