Mexico is a key market within the Latin American region with Mexico City as the mayor IT and telecom centre.
28/02/2008 ::
Index:
- Growing telecom sector revenues
- Different services
- Internet & Software
- Telecom General
- Current developments within IT
Mexican ICT market shows impressive growth numbers:
30 % use a PC outside of home and 60 % use a PC in their school or work. Internet access outside of home has reached 66 % penetration and internet users are expected to more than double by 2010. In 2006 the number of broadband subscribers outgrew dial-up subscribers.
Also cell phone subscribers expected to surpass 66 % penetration by 2010 and mobile data services (SMS) represent 8 % of total mobile services revenues and are expected to rise to 20 % as the level in developed countries.
Growing telecom sector revenues
Telmex/Telcel dominates the segment with 90 % of the fixed line market and 66 % of the national long distance market.
The telecom sector has grown 3 times the national economy, and for mobile telephony there have been increments of over 30 % during 2006 and in 2007 the number of subscribers was 56.6 million. (Equals 52 % penetration).The major mobile market actors are –América Móvil (77 %), Telefónica Móviles (13.5 %), and Iusacell/Unefon (6.4 %)
Different services
iDEN (Nextel)
Prepaid services account for around 90 % of the market.
Internet & Software
Telmex dominates the segment with 75 % of the broadband market and 92 % of the total amount of lines in service by end of 2007. Broadband market doubled between 2004 and 2005.
Telecom General
Telecom sector was privatised in 1989, but competition is still weak.
In 2004, 2005 and 2006 the government issued several positive regulation amendments to spur market competition. Telmex and its sister company América Movil (Telcel) still remain the dominant market leaders. This trend is similar in the whole of Latin America, over 100 out of a total 256 million subscribers are America Móvil subscribers.
The Mexican ICT market size is expected to reach over USD 38 million in 2007 (growth of 10.9 % since 2006).
Current developments within telecom
A strong Mexican GSM market
Driven by a booming GSM market, Mexico’s mobile industry is growing at a yearly rate of around 22 %, and reached around 49 % penetration in end of 2006.
Rolling out the 3G network
The third generation of mobile phone technology is about to be rolled out in Mexico.
Opening up the market for Triple Play
Currently, Megacable, Cablemas, Multimedios, Redesand Acotelare are offering triple play services. For 2007 Mexico was expected to have about 150 000 subscribers for triple play. The largest market player, Telmex, is expected to participate in the triple play market by the first quarter of 2008.
Current developments within IT
Increased demand for internet services
With its 23 million internet users (2007) Mexico represents the 2nd largest market for Internet services in Latin America, after Brazil. This number is expected to more than double by 2010, thanks to increased internet availability in schools, companies, households and internet cafes.
High growth within broadband, especially ADSL
Broadband is one of the fastest growing markets in Mexico. The shift from dialup to broadband became apparent in 2005, when dial-up accounts started to decrease, while broadband soared by around 122 %.
Expanding broadband networks are driving growth in usage and subscriber numbers. During 2006 broadband growth drove the number of broadband subscribers ahead of dial-up subscribers for the first time.
Sørli + Orozco Network Consulting (Sonetworks) is a Norwegian/Mexican software development company located in Monterrey Mexico. They are taking parts in this growing marked in Mexico.
Strong growth for audiovisual (AV) products
The Mexican market for AV products and services is in a strong growth phase. The convergence of ICT and AV technologies is stimulating the demand in the Mexican market for the latest innovations in the consumer and professional end-user segments.
Service giants believe in the Mexican market
Hewlett-Packard recently opened a 4th building in its Guadalajara. The company has grown from 15 employees in 2001 to 1,000 in 2007. An additional 800 employees will be employed during 2008 and 2009.
Guadalajara is also home to a software-development centre opened in May 2007 by Tata Consultancy Services (TCS). TCS started with 300 employees, but plans to hire 5,000 more over the next five years.
Source: Swedish Trade Council