2013 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;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

Spectrum auctions in the 1.9GHz and 1.7GHz bands completed; Telcel maintains 70% market share; Telefónica’s success in spectrum auctions; regulator withdraws fine against Telcel relating to MTRs; Televisa’s 50% stake in Iusacell accepted by Federal Competition Commission; regulator takes control of 2.5GHz spectrum, reassigns it for 4G; Banorte launches MiFon mobile banking service; América Móvil develops m-payment platform with banks; operators sign up to data roaming transparency scheme; Nextel launches 3G service; Movistar launches LTE service; cable operators report lower churn resulting from take up of bundles; Smart Grid deployments gathering pace; government’s CompuApoyo initiative targets 1.7 million homes for computers and broadband access; Hughes delivers national satellite broadband network; government bill to provide 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; 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:

Movistar, Iusacell, Teléfonos de México (Telmex), Axtel, Alestra, Maxcom, Marcatel, Megacable, Cablemás, Cablevisión, Maxcom, Sistemas Interactivos de Telecomunicaciones (SIT) InterCable, CFE.

Researcher:- Henry Lancaster
Current publication date:- May 2013 (12h Edition)

Executive Summary

Telecom reform package heralds new wave of investment

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 sectors of one of Latin America’s largest markets. The report includes the regulator’s market data to February 2013, telcos’ financial and operating data to Q1 2013 and market developments to May 2013.

Telecom market overview

Mexico’s economy swiftly recovered from the downturn in 2008, with the OECD predicting that GDP would grow 3.8% in 2013, following similar growth since 2010. Growth in the telecoms market has long outpaced broader economic growth, primarily driven by the mobile and broadband sectors, as well as broadcasting. Growth remains strong compared with many other global markets, particularly those in Europe. A telecom aimed at reforming the telecom sector will set up a new regulator with a wider remit and empowered to impose fines, control pricing, and put a break on an appeals process which has hitherto obstructed the effectiveness of its resolutions. The bill would also update the country’s long-standing law limiting foreign investment in national telcos, and would force phone and TV providers to sell assets if they control more than 50% of the national market share.

Mobile market

LTE services have been launched by two of MNOs, following considerable investments in network upgrades. Telcel’s network already covers about 65% of the population. This is complemented by Telefónica’s service, using the 700MHz band. Both operators will also utilise 2.6GHz spectrum which the government plans to auction later in the year. These developments will further encourage the rapid development of the mobile data sector, which is accounting for an increasing share of overall mobile services revenue for operators.

Key telecom parameters – 2010; 2013

Sector

2010

2013 (e)

Subscribers by sector (million):

Fixed broadband subscribers

11.87

14.05

Mobile broadband

2.7

14.6

Mobile phone

91.3

107.9

Fixed-line telephony

19.9

20.4

Penetration by sector:

Fixed broadband

10.0%

12.6%

Mobile

79%

94%

Fixed-line

17.3%

18.7%

(Source: BuddeComm) 

Market Highlights

  • Telcel’s LTE network covers some 26 major cities, reaching about 65% of the population. The operator is investing US$3.95 billion to 2014 in network upgrades, including at least US$1 billion in equipment for LTE alone.
  • The electricity regulator CRE is looking to modernise the country’s existing grid with smart grids, thereby reducing the high power loss in transmission. The smart grid plan should be completed by late 2013, and will spearhead the multi-billion dollar investment in smart grid infrastructure required.
  • Telmex retains a dominant market share of fixed lines, given that the vast majority of communities are unprofitable for other operators to build competing networks. The regulator has encouraged competition where viable, in 2013 fining the company MXN657 million for failing to provide interconnection services on inter-city routes.
  • The government’s long-standing law limiting foreign investment in national companies is being addressed by the telecom reform package, which will allow foreign investors to own more than 49% of telcos’ shares.
  • The telco Alestra is investing MXN1.2 billion in a fibre network to meet consumer demand for converged services. More than half of the funding is being spent on infrastructure projects. The fibre-optic network will be extended to about 17,000km across the country, covering some 50 cities.
  • In late 2012 the Ministry of Communications and Transport contracted HNS to deliver an 11,000-site solar-powered broadband satellite network providing national coverage and aimed at areas underserved by existing fixed-line and mobile networks. The network, completed in early 2013, is centered on anchor site such as schools, hospitals, government offices, community centres across all 32 states.

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 Economic background
  • 3. Telecommunications Market
    • 3.1 Background
    • 3.2 Overview
  • 4. Regulatory Environment
    • 4.1 Privatisation
    • 4.2 Deregulation
    • 4.3 Foreign investment rules
    • 4.4 Regulatory authorities
    • 4.5 Telecoms reform – 2013
  • 5. Fixed Network Market
    • 5.1 Background
    • 5.2 Overview
    • 5.3 Telmex/América Móvil
    • 5.4 Fixed-line statistics
  • 6. Telecommunications Infrastructure
    • 6.1 Smart grids
      • 6.1.1 Smart grid technology
  • 7. Broadband Market
    • 7.1 Overview
    • 7.2 Government support
      • 7.2.1 Municipal broadband
    • 7.3 Broadband statistics
    • 7.4 Access
    • 7.5 Asymmetrical Digital Subscriber Line (ADSL)
      • 7.5.1 Prodigy Infinitum (Telmex)
    • 7.6 Cable broadband
      • 7.6.1 Megacable
      • 7.6.2 Cablemás
      • 7.6.3 Cablevisión
    • 7.7 Fibre developments
    • 7.8 Wireless broadband
      • 7.8.1 WiFi
      • 7.8.2 Early WiMAX developments
    • 7.9 Mobile broadband
    • 7.10 Internet via satellite
    • 7.11 Utilities broadband
      • 7.11.1 Utilities communications
    • 7.12 Triple play and VoIP developments
  • 8. Digital Media
    • 8.1 Digital TV broadcasting
      • 8.1.1 Overview
      • 8.1.2 Cable TV (CATV)
      • 8.1.3 Video-on-Demand (VoD)
      • 8.1.4 Direct-to-Home (DTH) Satellite TV
      • 8.1.5 Pay TV statistics
      • 8.1.6 Digital Terrestrial TV (DTTV)
      • 8.1.7 Other developments
  • 9. Mobile Communications
    • 9.1 Overview of Mexico’s mobile (cell phone) market
      • 9.1.1 Mobile market statistics
    • 9.2 Regulatory issues
      • 9.2.1 Regulatory authorities
      • 9.2.2 Spectrum auctions
      • 9.2.3 Mobile Termination Rates (MTRs)
      • 9.2.4 Data roaming
    • 9.3 Mobile technologies
      • 9.3.1 Overview
    • 9.4 Major mobile operators
      • 9.4.1 Telcel
      • 9.4.2 Movistar
      • 9.4.3 Grupo Iusacell
      • 9.4.4 Nextel de México
    • 9.5 Mobile voice services
      • 9.5.1 Minutes of Use (MOU)
      • 9.5.2 Prepaid
      • 9.5.3 Satellite mobile
    • 9.6 Mobile data services
      • 9.6.1 SMS Text Messaging
      • 9.6.2 Multimedia Messaging Service (MMS)
      • 9.6.3 Push-to-Talk (PTT)
      • 9.6.4 Long-term Evolution (LTE)
      • 9.6.5 M-payment services
      • 9.6.6 M-banking
  • 10. Forecasts
    • 10.1 Broadband Forecasts
    • 10.2 Mobile Market Forecasts – 2011 - 2016
    • Table 1 – Country statistics – 2012
    • Table 2 – Telecom revenue and annual growth – 2012 (e)
    • Table 3 – Internet user statistics – 2012
    • Table 4 – Broadband statistics – 2012
    • Table 5 – Mobile statistics – 2012
    • Table 6 – National telecommunications authorities
    • Table 7 – Telecom market growth – 2004 - 2013
    • Table 8 – Telecom sector investment – 1996 - 2013
    • Table 9 – Telecom sector revenue and annual growth – 1998 - 2013
    • Table 10 – Telmex revenue, EBITDA – 2011 - 2013
    • Table 11 – Historical - Fixed lines in service, annual change and teledensity – 1996 - 2004
    • Table 12 – Fixed lines in service, annual change and teledensity – 2005 - 2013
    • Table 13 – Telmex fixed-line RGUs – 2011- 2013
    • Table 14 – Internet users and annual change - 2000 – 2013
    • Table 15 – Internet and broadband penetration - 2000 – 2013
    • Table 16 – Internet subscribers by access technology – 2000 - 2013
    • Table 17 - Prodigy Infinitum ADSL subscriber lines and annual change – 2002 – 2012
    • Table 18 – Megacable cable modem subscribers and annual change – 2001 – 2013
    • Table 19 – Megacable ARPU – 2007 - 2013
    • Table 20 – Megacable revenue by sector – 2010 - 2013
    • Table 21 – Cablemás cable modem subscribers and annual change – 2002 – 2013
    • Table 22 – Cablevisión cable broadband subscribers and annual change – 2002 – 2013
    • Table 23 – Mobile broadband subscribers – 2010 - 2013
    • Table 24 – Cable VoIP subscribers of major providers – 2006 - 2013
    • Table 25 – Historical - Cable TV subscribers – 1998 - 2004
    • Table 26 – Cable TV subscribers – 2005 - 2013
    • Table 27 – Megacable TV subscribers – 2010 - 2013
    • Table 28 – Historical - Satellite TV subscribers – 1998 - 2013
    • Table 29 – Satellite TV subscribers – 2005 - 2013
    • Table 30 – Televisa video subscribers by platform – 2010 - 2013
    • Table 31 – Pay TV subscribers by technology, annual change and penetration rate – 1998 - 2012
    • Table 32 – Mobile subscribers, annual change and penetration rate – 2000 - 2013
    • Table 33 – Mobile market share by major operator – 2001 - 2012
    • Table 34 – Mobile market revenue – 2001 - 2013
    • Table 35 – Telcel subscribers and annual change – 2000 - 2013
    • Table 36 – Telcel churn, monthly minutes of use and ARPU – 2008 - 2013
    • Table 37 – Telcel wireless revenue – 2010 - 2013
    • Table 38 – Movistar subscribers and annual change – 2001 - 2013
    • Table 39 – Movistar minutes of use and ARPU – 2008 - 2013
    • Table 40 – Movistar financial data – 2008 - 2013
    • Table 41 – Iusacell subscribers and annual change – 2000 - 2010
    • Table 42 – Unefón subscribers and annual change (historic) – 2000 - 2007
    • Table 43 – Monthly and yearly minutes of use and annual change – 2000 - 2011
    • Table 44 – Prepaid / postpaid subscribers and annual change – 1997 - 2012
    • Table 45 – Proportion of prepaid / postpaid subscribers – 2000 - 2012
    • Table 46 – SMS traffic – 2006 - 2012
    • Table 47 – Forecast fixed broadband subscribers and penetration rate – lower growth scenario – 2011 – 2016; 2020
    • Table 48 – Forecast fixed broadband subscribers and penetration – higher growth scenario – 2011 – 2016; 2020
    • Table 49 – Forecast mobile subscribers and penetration lower growth scenario – 2011 - 2012; 2016
    • Table 50 – Forecast mobile subscribers and penetration higher growth scenario – 2011 - 2012; 2016
    • Chart 1 – Internet users and penetration rate – 2000 – 2013
    • Chart 2 – Internet subscribers by access technology – 2000 – 2013
    • Chart 3 – Prodigy Infinitum ADSL subscriber lines and annual change – 2003 – 2012
    • Chart 4 – Megacable cable modem subscribers and annual change – 2001 – 2013
    • Chart 5 – Megacable revenue by sector – 2010 – 2013
    • Chart 6– Cablemás cable modem subscribers and annual change – 2002 – 2013
    • Chart 7– Cablevisión cable modem subscribers and annual change – 2002 – 2013
    • Chart 8 – Mobile subscribers and penetration rate – 2000 – 2013
    • Chart 9 – Telcel subscribers and annual change – 2000 – 2013
    • Chart 10 – Movistar subscribers and annual change – 2001 – 2013
    • Chart 11 – Movistar financial data – 2008 – 2013
    • Chart 12 – Iusacell subscribers and annual change – 2000 – 2010

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