The Mexican telecommunications sector saw 22.4 percent growth Q1 2007 vs Q1 2006, according to telecommunications regulator Cofetel’s production sector index ITEL. The growth was higher than Mexico’s average overall economic growth of 2.6 percent. According to Cofetel, the telecommunications sector benefited from the introduction of new rate packages, partnerships between operators and a stable macroeconomic environment. Local fixed line telephony rates fell 3.9 percent in Q1, vs Q1 2006. Postpaid mobile rates fell 20.4 percent, while prepaid calling rates dropped 4 percent. National long distance rates also saw a 7.7 percent fall, while international long distance fell only 1 percent. Helped by calling party pays (CPP) and lower rates, outgoing national long distance traffic saw a 14.2 percent rise while outgoing international long distance rose 19.8 percent. Digital trunking services had 1.74 million users at end-Q1 2007, up 35.8 percent. The mobile industry added 2.81 million subscribers in Q1, ending the period with 59.8 million, up 22 percent.

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