With a population of around 121 million and a fixed-line teledensity of around 18% Mexico’s telecom sector retains significant potential for growth over the next few years.
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Mexico contracts Altan to operate wholesale mobile network
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Key Companies Covered in this report: Telcel, Movistar, Iusacell, Teléfonos de México (Telmex), Axtel, Alestra, Maxcom, Marcatel, AT&T Mexico, América Móvil, Nextel Mexico, Movistar (Telefónica Mexico), Globalstar, Unefón, Virgin Mobile, Weex, Megacable, Cablemás, Cablevisión, Grupo Televisa, Sistemas Interactivos de Telecomunicaciones (SIT), Megafón, InterCable, CFE.
The fixed-line market is still dominated by the incumbent Telmex, with about 62% market share, while the mobile market is dominated by Telmex’s sister company Telcel, both being owned by América Móvil.
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The mobile market is undergoing considerable changes in the wake of efforts to curb the market dominance of Telcel, the entry of AT&T Mexico following its acquisition of Nextel Mexico and Iusacell, and the greater competitive role being played by MVNOs. Telcel still accounts for about 66% of the market by subscribers, though it is in the process of selling assets to reduce its share to below 50%.
The regulator has also endeavoured to encourage competition through issuing additional spectrum.
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In January 2017 the Altan consortium was contracted to manage a wholesale mobile network for 20 years, aimed at delivering mobile voice and data to underserved areas. The network is to be made available for use from March 2018.
Separately, the regulator February 2017 published a plan to auction up to 130MHz of spectrum in the 2.5GHz band later in the year, geared to improving mobile broadband services.
The broadband sector is one of the highest growth areas in Mexico’s telecoms market, although it suffers from a lack of competition to the dominant player Telmex, which still accounts for the lion’s share of subscribers. 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.
This report provides statistics and analyses on Mexico’s fixed-line market, as well as an overview of regulatory developments. In addition the report covers the mobile market, including a range statistical data as well as subscriber forecasts to 2021, as well as an assessment of the broadband and internet markets, including technology developments and the migration to fibre infrastructure.
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America Movil secures an additional 60MHz of spectrum in the 2.5GHz band from Grupo MVS;
Movistar signs national roaming deal with Telcel;
Telcel and AT&T Mexico secure AWS spectrum licences at auction;
Regulator issues plan for auction of 2.5GHz spectrum expected in Q3 2017;
Altan consortium selected to operate the nationwide wholesale mobile network using 700MHz band spectrum;
Movistar to invest MXN3 billion to expand LTE to 300 cities by 2018;
Report update includes the regulator’s market data report to June 2016, telcos’ financial and operating data to Q4 2016, market developments.
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