Telefonica makes moves to exit the Mexican Telecom Market
Mexico – Telecoms, Mobile and Broadband With a population approaching 125 million and with relatively low broadband and mobile penetration, Mexico’s telecom sector retains significant potential for growth. The market is still dominated by the incumbent Telmex and by Grupo Televisa, which together retain about two thirds of subscribers overall. A regulator newly set up in 2013 has enforced measures aimed at removing barriers to foreign investment and at reducing the market share of these dominant operators.
The reforms are helping to make Mexico’s telecom market more competitive. One result of competitive pressure is the decision of Telefonica Group to exit the Mexican telecoms market, a process which is being undertaken in stages which includes the sale of fibre assets, the migration of mobile subscribers to ATandT Mexico’s network and the return of spectrum concessions to the regulator. The Group sold units in Guatemala and El Salvador in March 2019.
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In the fixed broadband sector significant changes are underway, with the main cable TV providers Megacable and Grupo Televisa widening their bundled services offerings, and with some important market consolidation. The fibre sector has shown particularly strong growth during the last two years as the key operators expand their network reach beyond the core densely urban areas.
The mobile market also continues to undergo considerable changes in the wake of regulatory efforts to curb the market dominance of Telcel. Although the MVNO segment has only a very small market share it continues to attract investment, and new players enter the market each year. A wholesale mobile network operating in the 700MHz band was set up in 2018 and will reach the vast majority of the population by 2025. Developments in 5G have been slow given the existing capacity of LTE, though the auction of spectrum in the 600MHz band (among the first globally) by late 2020 will stimulate the sector as operators launch services from 2021.
This report provides statistics and analyses on Mexico’s fixed-line market, as well as an overview of regulatory developments. The report also reviews the mobile market, including a range of statistical data as well as subscriber forecasts. In addition, the report covers the fixed and mobile broadband sectors, including an assessment of technological and regulatory developments.
Regulator confirms 600MHz auction for end-2020
Movistar to hand back spectrum concessions as it exits Mexican market
MNOs prepare to shut down legacy GSM networks
Regulator rekindles SIM card registration program
America Movil develops m-payment platform with banks
Report update includes the regulators market data report to June 2019, telcos financial and operating data to Q3 2019, Telecom Maturity Index charts and analyses, market developments.
Companies mentioned in this report:
América Móvil (Telcel, Telmex), Megacable, Cablemás, Cablevisión, Grupo Televisa, Maxcom, Sistemas Interactivos de Telecomunicaciones (SIT), Axtel, Megafón, InterCable, CFE, , ATandT Mexico (Iusacell, Nextel Mexico), Movistar (Telefónica Mexico), Globalstar, Unefón, Virgin Mobile, Weex, Alestra, Maxcom, Marcatel.
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