Mexican telecom market shaken up by AT&T presenceGiven a population of around 120 million and relatively low penetration in all sectors, Mexico’s telecom sector retains significant growth potential over the next few years. The fixed-line market is still dominated by the incumbent Telmex, with about 80% market share, while the mobile market is dominated by Telmex’s sister company Telcel, both being owned by América Móvil. The pay TV sector is similarly concentrated, with Grupo Televisa the dominant player in cable TV as also in satellite TV, where it is a major shareholder in Sky Mexico.
Legislation promoting telecom reform was passed in 2013, and since then efforts have been made to encourage competition and to curb América Móvil’s dominance. Part of the reform process involved the creation of a new telecom regulator to oversee the sector, remove barriers to foreign investment and encourage the entry of new players.
The process is beginning to show positive results, particularly with the expansion of Telefonia and AT&T in the market. AT&T in recent years has acquired Iusacell and Nextel Mexico, as well as DirecTV. The company’s potential acquisition of AWS spectrum, to be auctioned in early 2016, would enable it to develop its regional market plans, incorporating 400 million consumers in the US and Mexico.
Additional spectrum being auctioned will improve the ability of operators to offer mobile data services nationally, and extend mobile broadband services into rural areas.
This report provides an overview of Mexico’s telecom sector, including a review of the key operators, an assessment of the legal and regulatory landscape, and a range of statistics. The report also covers the mobile voice and data markets, including subscriber forecasts. In addition, the report provides statistics on Mexico’s fixed-line broadband and digital TV markets as these evolve in response to recent legislative changes.
Key developments:
New telecom regulator formed to oversee telecom legislation aimed at encouraging competition;
Continued strong growth in pay TV subscriptions;
Cable operators report lower churn resulting from take up of bundles;
Smart Grid deployments gathering pace;
Telcel sells assets in eastern and northern areas;
Regulator preps for 700MHz and AWS spectrum auctions;
Telesites set up to manage América Móvil’s domestic tower business;
Movistar investing MXN3 billion to expand LTE to 300 cities by 2018;
Government reduces investment in state-owned shared mobile network from $10 billion to $7 billion;
América Móvil develops m-payment platform with banks;
Report update includes the regulator’s market data updates to June 2015, telcos’ financial and operating data to Q3 2015, recent market developments.Companies mentioned in this report:
Telcel; Movistar, Iusacell, Teléfonos de México (Telmex), Axtel, Alestra, Maxcom, Marcatel, Megacable, Cablemás, Cablevisión, Sistemas Interactivos de Telecomunicaciones (SIT), Megafón, InterCable, CFE, Nextel Mexico, Grupo Televisa, AT&T, Globalstar, Unefón.
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1. Key statistics
1.1 Country overview
2. Telecommunications market
2.1 Historical overview
2.2 Market analysis
2.3 Telecoms reform
3. Regulatory environment
3.1 Regulatory authorities
3.2 Privatisation
3.3 Deregulation
3.4 Foreign investment rules
4. Fixed network operators
4.1 Introduction
4.2 Telmex/América Móvil
5. Telecommunications infrastructure
5.1 Overview of the national telecom network
5.2 National network infrastructure developments
5.3 Smart infrastructure
5.3.1 Smart grid technology
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market analysis
6.1.2 Government support
6.1.3 Broadband statistics
6.1.4 Access
6.1.5 Forecasts – broadband subscribers –-2015; 2017; 2020
6.2 Hybrid Fibre Coax (HFC) networks
6.2.1 Megacable
6.2.2 Cablemás
6.2.3 Cablevisión
6.3 Digital Subscriber Line (DSL) networks
6.3.1 Prodigy Infinitum (Telmex)
6.4 Fibre-to-the-Premises (FttP) networks
6.5 Other fixed broadband services
6.5.1 Wi-Fi
6.5.2 WiMAX
6.5.3 Internet via satellite
6.5.4 Utilities broadband
7. Digital media
7.1 Introduction
7.2 Bundled services
7.3 Cable TV (CATV)
7.4 Videostreaming
7.5 Direct-to-Home (DTH) Satellite TV
7.6 Pay TV statistics
7.7 Digital Terrestrial TV (DTTV)
7.8 Other developments
8. Mobile communications
8.1 Market analysis
8.2 Mobile statistics
8.2.1 General statistics
8.2.2 Prepaid
8.2.3 Mobile voice
8.2.4 Mobile data
8.2.5 Mobile broadband
8.2.6 Forecasts
8.3 Regulatory issues
8.3.1 Regulatory authorities
8.3.2 Spectrum auctions
8.3.3 Mobile Termination Rates (MTRs)
8.3.4 Mobile Number Portability (MNP)
8.3.5 Roaming
8.3.6 State network pilot
8.3.7 Telecom legislative reform
8.4 Mobile infrastructure
8.4.1 Digital networks
8.4.2 Other infrastructure developments
8.5 Major mobile operators
8.5.1 Telcel
8.5.2 Movistar
8.5.3 Grupo Iusacell
8.5.4 Nextel de México
8.5.5 Mobile Virtual Network Operators (MVNOs)
8.6 Mobile content and applications
8.6.1 M-payment services
8.6.2 M-banking
Table 1 – Country statistics – 2015 (e)
Table 2 – Telecom revenue and annual growth – 2015 (e)
Table 3 – Telephone network statistics – 2015 (e)
Table 4 – Internet user statistics – 2016 (e)
Table 5 – Broadband statistics – 2015 (e)
Table 6 – Mobile statistics – 2015 (e)
Table 7 – National telecommunications authorities
Table 8 – Fixed-line traffic – 2014 - 2015
Table 9 – Average fixed-line traffic per line– 2014 - 2015
Table 10 – Market share of fixed line traffic by operator – 2014 - 2015
Table 11 – Telecom market growth – 2004 - 2014
Table 12 – Telecom sector contribution to GDP – 2004 - 2015
Table 13 – Telecom sector investment – 1999 - 2014
Table 14 – Telecom sector revenue and annual growth – 1998 - 2014
Table 15 – Market share of fixed lines by operator – 2014 - 2015
Table 16 – Telmex fixed-line subscribers – 2009 - 2015
Table 17 – Telmex revenue, EBITDA – 2011 - 2015
Table 18 – Historical - Fixed lines in service, annual change and teledensity – 1996 - 2004
Table 19 – Fixed lines in service, annual change and teledensity – 2005 - 2016
Table 20 – Length of fibre backbone network – 2001- 2012
Table 21 – Smart grid technology market revenue – 2012- 2020
Table 22 – Proportion of internet accesses by medium – 2014
Table 23 – Proportion of residential broadband accesses by platform – 2013 - 2015
Table 24 – Internet users and annual change - 2000 – 2016
Table 25 – Dial-up internet subscribers – 2000 - 2015
Table 26 – Fixed-line broadband subscribers – 2003 - 2016
Table 27 – Market share of broadband subscribers by operator – 2014 - 2015
Table 28 – Forecast fixed broadband subscribers – 2015; 2017; 2020
Table 29 – Cable modem broadband subscribers – 2001 – 2016
Table 30 – Megacable cable modem subscribers – 2001 – 2015
Table 31 – Megacable ARPU – 2007 - 2015
Table 32 – Megacable revenue by sector – 2010 - 2015
Table 33 – Cablemás cable modem subscribers and annual change – 2002 – 2015
Table 34 – Cablemás financial data – 2012 – 2014
Table 35 – Cablevisión cable broadband subscribers and annual change – 2002 – 2015
Table 36 – DSL broadband subscribers – 2001 – 2016
Table 37 - Prodigy Infinitum DSL subscribers – 2002 – 2015
Table 38 – FttP broadband subscribers – 2013 – 2016
Table 39 – Market share of pay TV subscribers by operator – 2014 - 2015
Table 40 – Market share of cable TV subscribers by operator – 2014 - 2015
Table 41 – Historical - Cable TV subscribers – 1998 - 2004
Table 42 – Cable TV subscribers – 2005 - 2015
Table 43 – Megacable TV subscribers – 2010 - 2015
Table 44 – Historical - Satellite TV subscribers – 1998 - 2004
Table 45 – Satellite TV subscribers – 2005 - 2015
Table 46 – Satellite TV subscribers by provider – 2013 - 2015
Table 47 – Televisa video subscribers by platform – 2010 - 2015
Table 48 – Televisa RGUs by service – 2013 - 2015
Table 49 – Televisa financial data – 2013 - 2015
Table 50 – Pay TV subscribers by technology, annual change and penetration rate – 1998 - 2015
Table 51 – Mobile subscribers, annual change and penetration rate – 2000 - 2016
Table 52 – Mobile market share by major operator – 2001 - 2015
Table 53 – Mobile market revenue – 2001 - 2015
Table 54 – Mobile market investment – 2008 - 2013
Table 55 – Market share of mobile subscribers by operator – 2014 - 2015
Table 56 – Historic - Prepaid / postpaid subscribers and annual change – 1997 - 2004
Table 57 – Prepaid / postpaid subscribers – 2005 - 2015
Table 58 – Proportion of prepaid / postpaid subscribers – 2000 - 2015
Table 59 – Historic - Mobile traffic – 1995 - 2004
Table 60 – Historic - Mobile traffic – 2005 - 2016
Table 61 – SMS traffic – 2006 - 2015
Table 62 – SMS messages per subscribers – 2006 - 2014
Table 63 – Active mobile broadband subscribers – 2009 - 2015
Table 64 – Market share of mobile broadband subscribers by operator – 2014 - 2015
Table 65 – Forecast mobile subscribers – 2015; 2017; 2020
Table 66 – Telcel subscribers and annual change – 2000 - 2015
Table 67 – Telcel churn, monthly minutes of use and ARPU – 2008 - 2015
Table 68 – Telcel wireless service revenue – 2010 - 2015
Table 69 – Movistar subscribers and annual change – 2001 - 2015
Table 70 – Movistar minutes of use and ARPU – 2008 - 2015
Table 71 – Movistar financial data – 2008 - 2015
Table 72 – Iusacell subscribers and annual change – 2000 – 2015
Table 73 – Iusacell financial data – 2012 – 2013
Table 74 – Unefón subscribers and annual change (historic) – 2000 - 2007
Table 75 – Nextel Mexico financial data – 2012 - 2014
Table 76 – Nextel Mexico financial data (new format) – 2015
Table 77 – Nextel Mexico subscribers – 2012 - 2015
Chart 1 – Telmex revenue, EBITDA – 2011 – 2015
Chart 2 – Fixed lines in service, annual change and teledensity – 2005 – 2015
Chart 3 – Megacable revenue by sector – 2010 – 2015
Chart 4 – Mobile subscribers and penetration rate – 2000 – 2016
Chart 5 – Telcel subscribers and annual change – 2000 – 2015
Chart 6 – Movistar subscribers and annual change – 2001 – 2015
Chart 7 – Movistar financial data – 2008 – 2015
Chart 8 – Iusacell subscribers and annual change – 2000 – 2015
