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Publication Date: December 2006
Number of Pages: 248
The Mexican market has long been an area of consistent growth for Latin America’s telecommunications sector, generating almost a third of all revenues in the region. A country with pent-up demand for connectivity, Mexico’s expected rate of expansion for the telecom market contrasts with prospects for other mature markets in the region, where overall growth has been hampered by cannibalization of services and fixed line disconnections. With EIU’s forecast of a stable macroeconomic climate for Mexico in the next five years, the ability of Mexican operators to continue penetrating mid- and low- income strata via prepaid plans, and anticipated demand for new data-based services, the future for the Mexican telecom market looks bright.
Expanding on this outlook, Pyramid Research estimates that the consumer market in Mexico will generate US$14.1bn in 2006, and will grow at a CAGR of 8 percent between 2006 and 2011, representing significant opportunities in different services. Due to the new Convergence Agreement, fixed operators will continue to promote aggressively bundled services, while mobile operators will move towards differentiation with data services and attractive tariffs. Areas with the fastest growth rates in revenue terms will be broadband Internet services, mobile services and pay TV services, all of which will grow at a CAGR higher than 8 percent between 2006 and 2011. Key enablers of this increase in penetration include a positive economic outlook, the increasing level of competition due in part to consolidation in the industry, wider coverage of telecom services and gradual decreasing prices.
Mexico’s enterprise segment, representing 33 percent of the total telecommunications market, will generate roughly US$9.8bn in revenues in 2006. This market, which encompasses fixed and mobile voice, as well as data connectivity through the Internet or private circuits, is undergoing transformation as a result of the wider adoption of IP-based services and the cannibalization of traditional fixed traffic by mobile networks. As a result, Pyramid Research sees significant revenue growth opportunities in the provision of broadband connectivity and associated services, as well as in the expansion of mobile enterprise services. Overall, Pyramid Research estimates that the enterprise segment will grow at an annual rate of 3 percent for the next few years.
In this edition of the Mexico Communications Market Report, Pyramid analyzes adoption and revenue trends across telecoms and media services and their impact on the infrastructure market. We provide forecasts of macroeconomic indicators as well as a demographic breakdown of subscribers by income, age and geographical location. We provide historical trends as well as five years of forecasts for each service and technology - identifying areas of opportunity for service providers, infrastructure and terminal vendors. Finally, we examine competitive strengths of the main operators and vendors in the Mexican telecoms playing field.
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What is the current political and economic business environment in Mexico?
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What are the international benchmarking strategies and opportunities?
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How will recent and upcoming regulatory changes impact the Mexican communications market?
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What is the fixed communications market structure and what are the current trends (includes forecasts
by state and our estimates for the residential and business segments)?
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What is the mobile communications market structure and what are the current trends (includes a breakdown of
corporate vs. residential users, expectations for growth by mobile region and our estimates for
mobile uptake by social and age strata)?
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Author: Latin American Team
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