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July 12, 2011

Mexican Telecom Industry to Touch $3.6 Billion by 2015: Pyramid Research
By Rajani Baburajan
TMCnet Contributor

The Mexican optic fiber market is likely to grow 10 times by 2015 and the size of the business will be $3.6 billion, according to Pyramid Research.

Investment in developing and launching the new network in Mexico is likely to touch $110 million. The telecom industry will boom as the Calderon administration will be driving the economy in Mexico in the next few years.

The reforms in Mexico are happening at a time when the United Nations is declaring Internet access as a basic human right. The latest reforms by the Calderon administration to deregulate optic fiber are expected to offer Mexicans increased access to communications.

Half of Mexico's households will have access to services thanks to optic fiber deregulation initiatives. New optic fiber offerings, including broadband Internet, television, home and wireless phone, will be offered in August 2011. The new services will benefit 10 million users in Mexico.

“According to the results of a census we conducted throughout the year, nearly 40 percent of Mexican homes have access to cable television. This figure will most likely increase by next year. I can assure you that by 2012, more than half of households in Mexico will have access to the plethora of services cable companies offer,” said President Calderon in a statement.

The announcement was made during the 2011 Expo of the National Chamber of the Cable Telecommunications Industry (CANITEC), held in May.

Currently, customers in Mexico face several Quality of Service (QoS) issues. Telecom services in many Mexican cities have traffic and coverage problems. Customers experience dropped calls and inability to send text messages. Internet and cable television services suffer service outages. These new offerings are expected to significantly enhance the reliability of the telecommunications services across the country, according to Pyramid Research.

Mexico is also experiencing merger and acquisitions in telecom space. Recently, telecom service provider AT&T and ALFA formed an agreement by which ALFA will acquire AT&T's 49 percent stake in Alestra (News - Alert), the Mexican telecom company. Once this acquisition is completed, ALFA will be the sole shareholder of Alestra.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Rich Steeves


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