Abstract
The Mexican telecom market generated $27.1bn in service revenue in 2008. We
expect it to be worth $21.4bn in 2009, a 21% decrease mainly the result of
fluctuations in the exchange rate, but to expand at a CAGR of 6.3% over the
next five years to generate $29.0bn in 2014. The fastest growth segments will
be fixed VoIP, broadband Internet and mobile data. Mobile and fixed voice,
although growing more slowly, will remain the principal source of revenue for
all operators in the market. Increasing competition among incumbent Telmex and
regional cable groups is fueling the adoption of broadband access and the
migration to IP-based services. At the same time, both traditional fixed
circuit-switched and dial-up Internet services will show negative growth in
the coming years. Thanks to multiplay bundles and the entry of new players
such as Dish and Maxcom promoting competition, the pay-TV market is becoming
more dynamic.
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