Synopsis

The broadband sector is a significant growth area in Mexico’s telecoms market. Although it suffers from a lack of competition, with the dominant player Telmex still accounting for the lion’s share of subscribers, legislation introduced in 2014 is aimed at reducing the operator’s share to below 50%. The same is true for its sister company Telcel in the mobile sector. The pay TV sector is similarly concentrated, with Grupo Televisa the dominant player in the cable TV sector as also in the satellite TV sector, where it is a major shareholder in Sky Mexico.

Despite market concentration there are significant changes under way. The main cable TV providers, Megacable and Grupo Televisa (which incorporates Cablemás and Cablevisión, among other regional players), are broadening their bundled services offerings to include cable TV, broadband and telephony, and as a result their subscriber bases have grown steadily in recent years. In addition, the entry of AT&T to the mobile market, following its acquisitions of Nextel and Iusacell, has enabled the company to build up its service offerings. On a larger scale the company is developing a regional market incorporating Mexico and the US, relying on scale to improve its competitive clout. There remains significant scope for further market development given that the country’s broadband penetration is relatively low, while consumer prices remain high.

This report provides an overview of Mexico’s broadband and internet market, accompanied by relevant statistical data and subscriber forecasts.

Key developments:

• Grupo Televisa considers sale of its cable assets;
• Mexico's first local Internet Exchange Point opens in Mexico City;
• Further substantial WiMAX investments made;
• Hughes delivers national satellite broadband network;
• Report update includes the regulator's market data updates to March 2018, telcos' financial and operating data to Q2 2018, recent market developments.

Companies mentioned in this report:

Telmex, Megacable, Cablemás, Cablevisión, Grupo Televisa, Maxcom, Sistemas Interactivos de Telecomunicaciones (SIT), Axtel, Megafón, InterCable, CFE.