Telecoms Sector in Mexico
Mexican telecommunications is an increasingly profitable market. The proliferation of wireless communications has turned it into one of the most promising markets for wireless equipment and services.
Since 2003, Telecommunications industry in Mexico has had an average annual growth of 20.94%. In the last trimester of 2011 Telecoms in Mexico grew 11% over the same quarter the previous year. This is explained due to a big push from mobile carriers and “triple play packages” (Voice, Data and Video) as well as an increase in the number of subscriptions of satellite TV, international long distance traffic and mobile.
Satellite TV continues to be the most dynamic sector while mobile and landlines (international long distance traffic) were among those reporting significant recovery rates.
During the fourth quarter of 2011, mobile phone traffic grew 14.7% over 2010, while mobile phone lines grew by 9.4% reaching a total of 94.5 million, which represents 84.2 lines per 100 inhabitants. According to an OECD report, the estimated penetration of the Mexican mobile market reached 86% on September 2011.
Up to 2011, statistics show that there are 17.5 landlines per each 100 inhabitants. The year closed with a total of 19.6 million lines. This figure represents a decrease of 2.6% over the period October-December of 2010. This tendency is attributed mainly to the global phenomenon of substitution of landlines for mobile lines and the use of broadband services for internet access instead of landlines.
Statistics show an upward trend in internet usage in Mexico. From 2005 to 2010 internet had an average yearly growth of 15.5%, reaching a total of 34.9 million users in 2010.
Satellite / Cable TV
Satellite TV grew 30.8% and Cable TV 2.9% in the fourth quarter of 2011 compared to the same quarter of 2010. Satellite Television also reached 5.6 million subscribers, a 44% growth versus 2010. It is worth mentioning that it has been greatly benefited by the attractive pricing promotions driven by new entrants to this market.
In September 2010, President Felipe Calderon announced a decree that marks the transition from analog to digital television in Mexico by the end of 2015. In his message, Calderon pointed out that this would extend cultural and informative content, plus they would be releasing a 700 megahertz band to improve the mobile phone services that all Mexicans will have access to.
There are 2 main areas where Telecoms in Mexico will certainly grow: broadband coverage and internet access.
According to the National Development Plan, it is expected to feature an extensive program of tenders for bands of 700 megahertz (MHz) and 2.5 gigahertz (GHz). The spectrum in the 1.7 Ghz band is for digital television and there is a paln to deploy a third or fourth open broadcast digital TV network.
Some opportunities in the Mexican Telecommunications sector are:
Broadband related services.
Consultancy on improving networks.
New Technologies for fixed and mobile phones.
Internet security and other internet related services.
Well established distance learning methods.
Downloadable content for mobile phones.
Getting into the market
According to the Federal Telecommunications Law adopted in 1995, the Ministry of Communications and Transport (SCT) is responsible of granting licences for market entry and also to revoke those licences under certain conditions.
In 1996 the Federal Commission of Telecommunications (COFETEL) was created as a regulator and is responsible for supervising, reviewing and promoting competition within the sector.
Besides the competition authority, the Federal Competition Commission (COFECO) is also in charge of overseeing the sector, while the Consumer Protection Agency (PROFECO) in conjunction with COFETEL, are responsible for protecting consumers.
Additionally, the Ministry of Finance (SHCP) is also involved in determining minimum prices for spectrum auctions as well as the prices for renewal of concessions
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To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
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Ana Gallardo, Trade & Investment Research Officer. Tel: +52 (664) 615 8046 or email: [email protected].
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