Telecommunications to Boost Mexican Economy

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Mexico Telecommunications Market
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Mexico has a population of around 122 million and
has around 18 of fixed-lines in telecom sector.
This trend projects a significant potential
growth in the telecommunications sector. The
telecom market is dominated by the incumbent
Telmex consisting of about two thirds of Mexican
subscribers and the mobile market is dominated by
Telcel. Telmex and Telcel are sister companies
owned by América Móvil in the country. Mexico has
proposed telecom reform laws in the year 2013 to
set up new regulatory laws to remove barriers
from foreign investment. These reforms made the
existing Mexicos telecom market more
competitive.
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The highest growth areas in the Mexico telecoms
market is the broadband sector. Megacable and
Grupo Televisa are the dominant players in the
cable TV and satellite TV sector. These players
are broadening their services by bundling there
services with cable TV, broadband and telephony.
This trend has attracted more consumers and their
subscriptions have grown steadily in the recent
years. The entry of ATT into the mobile market
has enabled the growth in the telecommunications
sector. Multi-spectrum auctions in Mexico are
expected by the end of 2017, enabling operators
to improve the quality of mobile data offerings.
In the year 2017, the ALTAN consortium was
contracted to manage a wholesale mobile network
for 20 years in Mexico. It aims at delivering
mobile voice and data to underserved areas and
will be made available for use from March 2018.
The ALTAN consortium will be a part based on an
infrastructure sharing agreement with Telcel in
Mexico to develop its 700MHz wholesale network.
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According to the study Mexico Country
Intelligence Report, the telecom infrastructure
in Mexico witnessed a continuing development from
wire to wireless technology in mobile and
broadband services over the recent years. Mexico
is one of the top users of smartphones around the
world and the mobile market is expected to expand
drastically with new ventures. The
telecommunication sector in Mexico is not just
about voice transmission but also includes data
transmissions such as electronic mail and social
media. It was expected that there will a rapid
growth with the ever growing population in Mexico
and latest technology advances which is an added
advantage for the Mexican economy and society.
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The Mexican fixed line telecoms market has
declined drastically with the introduction of
mobile market. Few surveys on Mexican population
indicate that new communication technologies such
as internet, mobile phones and smartphones are
under utilized by aged population. Smartphones in
Mexico are mostly used by almost all ages, people
aged between 25-34 preferably use tablets, and
people aged between 35-44 use both tablets and
smartphones along with teenagers who are the
biggest users of computer and internet. This
research was carried out on individuals who were
introduced to mobile communications and it was
summarized that young adults are avid users of
technology along with aging population in Mexico.

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The leading players in the telecommunication
sector in Mexico are America Movil (Telcel,
Telmex), ATT Mexico, Telefonos de Mexico
(Telmex), Axtel, Alestra, Maxcom, Marcatel,
Megacable, Cablemas, Cablevision, Grupo Televisa,
Sistemas Interactivos de Telecomunicaciones
(SIT), Megafon, InterCable, CFE, ATT Mexico
(Iusacell, Nextel Mexico), Movistar (Telefonica
Mexico), Globalstar, Unefon, Virgin Mobile,
Weex. Mexico's telephone network is
well-developed offering modern telecommunication
services but the telecom charges are high
compared to other regions. It was expected that
the competitive dynamics in the
telecommunications and pay-TV sectors in Mexico
will witness an evolution in service type,
technology, and regulatory trends
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IT was observed that the telecommunications and
pay-TV services revenue in Mexico will witness a
fastest growth rates across the globe over the
coming years. There would be a fierce competition
between the leading players such as Grupo
Televisa and ATT to expand their presence by
challenge Telmex/Telcel. The Altan's Red
Compartida LTE wholesale network is expected to
develop rapidly and commercialization along with
Red Troncal fiber-optic to increases penetration
and usage of its telecom services. VoIP leading
players Grupo Televisa and Megacable are
experiencing huge gains in their voice telephony
and doubling the number of subscriptions over the
coming years.
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