If reports are to be believed, Mexico’s telecom market will expand at a CAGR of 7.9% over the next five years to generate US$34.9 billion in 2015, owing to radio-access migration from 2.5G to 3G platforms, spectrum auction winners, and the entry of a new player increasing competition.
According to Jose Manuel Mercado, Senior Analyst at Pyramid, the need for better coverage, affordable prices and state-of-the-art communications has lead the federal government to promote competition in the mobile segment with much more intensity – two spectrum auctions took place in 2010, and the most important outcome is the entry of new player Televisa-Nextel. In 2011 Televisa-Nextel will start to offer services to the mass market, and Telcel and Telefonica will expand their 3G services thanks to their new capacities. The next step toward more competition will be related to the pay-TV market and its inclusion of Telmex.
Jose explained that, market expects mobile services revenue to account for 67% of the total market by 2015; this will be driven by an increase in the subscriber base of roughly 41 million net adds between 2009 and 2015, increased by intensified competition between Movistar and Telcel, which is helping to bring down the prices of services and to boost mobile data adoption. The pay-TV market is becoming more dynamic as a result of aggressive strategies and the entry of new players. Megacable will be the second MVNO player and with the spectrum acquired by Televisa, the pay-TV segment will lead the technological change.
Mexican multimedia conglomerate Televisa’s attempt to acquire a 50 percent stake in mobile operator Iusacell has reportedly been rejected by the Mexican regulatory authority. The deal has been under review for nine months and estimated to be worth US$ 1.6 billion.