U.S. Commercial Service U.S. Embassy MEXICO

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U.S. Commercial ServiceU.S. EmbassyMEXICO

• IP TELEPHONY
• THE MEXICAN MARKET

Todd Avery Commercial Attaché U.S. Embassy
Mexico City
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Role of New Technologies

• Facilitates global trade, competitiveness, and
  economic development
• Consolidation and convergence bring new business
  models
• Direct competition for last mile access
• Increased digital coverage in underprivileged
  rural areas
• Convergence increases the benefits of Information
  and Communication Technologies to all

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New Technology Trends

• Broadband, Wireless and VoIP technologies
• Value Added Services
• Focus on SMEs
• Convergence and mobility
• Business opportunities
• Telecom equipment Wireless, VoIP, security
  devices
• Content Enterprise applications, Entertainment
• Networking Unified messaging, Collaboration,
  Multimedia, Conferencing, Telemetrics, and
  broadcasting

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VoIP Around the World
10USD million earmarked for Interlinks VoIP
project, April 11, 2005 US-based operator
Interlink Global is undertaking a USD10 million
regional IP telephony upgrade project in Chile
and Venezuela, and says it hopes to spread its
VoIP services to the whole of Latin America. The
project will involve rolling out corporate VoIP
services similar to those that it currently
offers in the US, including Wi-Fi access.
Interlink Global was created when Interlink
(Chile) launched services aimed at business users
in partnership with an American start-up company
last month. It recently introduced services in
Venezuala after acquiring a local operator and
currently offers pre-paid cards for conventional
local, long-distance and international
telephony. http//www.telegeography.com/cu/article
.php?article_id6686
CHILE
VENEZUELA
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VoIP Around the World
FCC acts to end VoIP blocking The Federal
Communications Commission (FCC) has fined North
Carolina-based broadband provider Madison River
Communications USD15,000 for blocking VoIP calls.
A consent decree by the FCC prevents Madison from
blocking VoIP calls for 30 months. VoIP provider
Vonage has confirmed that it complained to the
FCC about Madison River last month, leading to
the FCCs investigation.
Cable companiess report strong VoIP takeup, April
12, 2005 According to a report by the Financial
Times, New York cable company, Cablevision, is
adding 1,000 telephony customers a day, reporting
350,000 in total at mid-March. Time Warner Cable,
meanwhile said that at the end of 2004 it had
220,000 VoIP customers, adding 10,000 per
week. http//www.telegeography.com/cu/article.php?
article_id6704
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VoIP Perceptions in Mexico

• Market sees good projected growth for 2005 2006
• Technology developments in IP and Broadband
  provide for Convergence voice, data and video
  in time it will incorporate broadcasting services
  as well
• Users see IP based solutions as
• Mature
• Secure
• Redundant
• Reliable
• Operators are offering integrated solutions
• Infrastructure
• Consultancy
• Administration

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Market Trends

• The development of new technologies, VoIP, will
  not stop
• Convergence will lead technology innovation based
  on wireless and IP Protocol solutions
• Narrowband maintains a market niche
• Older users, less savvy users, occasional users
• CATV will they be able to offer voice services
  directly?
• This could promote a more competitive market
• Incumbent dominates Broadband deployment through
  copper cable, ADSL, and rents its lines to other
  operators
• ADSL will outgrow cable modems 3 to 1 by 2006
  (Morgan Stanley)

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How Fast is ADSL Growing in Mexico?
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Voice Equipment in Mexico

• IP PBX systems growing in demand
• Participation moved from 6 in 2002 to 49 in
  2004
• Hybrid systems also with strong growth, from 8
  in 2002 to 21 in 2004
• Those users most likely will eventually move to
  complete IP systems in the future

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Challenges Ahead

• The development and implementation of new
  technologies in the fixed and wireless telephone
  services, and broadband Internet access can help
  boost competitiveness and productivity
• Regulation that considers convergence and
  competition will support other needed reforms
  such as in energy, fiscal and labor issues
• Cheaper prices in telecommunication services
  through competition
• Global competition forces the US and Mexico to
  strengthen their trade and other relationships
  between each other
• North America needs to move away from competing
  through cheap labor, and integrate within the New
  Economy environment

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US Mexico Cooperation

• NAFTA
• Greatest opportunity for economic growth
• U.S.-Mexico Trade increased 186 from USD 88
  billion in 1993 to USD 252 billion in 2003
• Elimination of Barriers in Key Sectors
• Partnership for Prosperity (P4P)
• Security and Prosperity Partnership (SPP)

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Partnership For ProsperityP4P

• Goals
• Greater Economic Prosperity
• More Purchasing Power
• Decreased Migration
• Tools
• Technology and Innovation Working Group
• CONACYT and CCE
• US Embassy and AMCHAM
• Increase use of ICTs for PyMEs
• Increase investment in infrastructure for commerce

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Security and Prosperity PartnershipSPP Mexico,
Canada, and U.S.

• Goals
• Establish a common approach to security
• Enhance competitive position of North American
  industries
• Provide greater economic opportunity for all
• Improve quality of life
• E-commerce and ICT Working Group
• Reduce online business costs
• Encourage private sector self-regulation
• Support a transparent, predictable, just and
  nondiscriminatory legislative and regulatory
  regime
• Eliminate redundant testing and certification
  requirements

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Security and Prosperity PartnershipSPP Mexico,
Canada, and U.S.

• E-commerce and ICT Working Group
• Raise ICT penetration levels
• Improve the low of e-commerce
• Eliminate redundant testing fees
• Upgrade online transactional security
• Prevent the creation of artificial barriers.

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U. S. Commercial Service

• An Agency of the U.S. Department of Commerce
• Mission is primarily to help small and medium
  size, export-ready companies to enter new
  markets, and to protect U.S. Business interests
  abroad
• Network of 100 offices in the U.S. and 160
  world-wide

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Services for Mexican Firms

• International Buyer Program
• Commercial News USA
• Business Service Provider Program

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US Commercial Service Events

• Supercomm 2005
• Delegation of Mexican entrepreneurs to assist at
  the largest IT and telecom trade fair in the US.
• Focused meetings
• Hotel and air discounts
• Workshops
• Contact
• juancarlos.prieto_at_mail.doc.gov
• https//www.buyusa.gov/mexico/es/supercomm.html

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U.S. Commercial ServiceU.S. EmbassyMEXICO
THANK YOU!

• IP TELEPHONY
• THE MEXICAN MARKET

KAREN L. ZENS MINISTER COUNSELOR FOR COMMERCIAL
AFFAIRS
May 3, 2005