ICT & Media
From The Report: Mexico 2014
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The telecoms industry, which includes fixed and mobile communications as well as pay TV, saw its revenues expand from $26.6bn in 2009 to $34.7bn at the end of 2013. After years of underinvestment and a market structure that has stifled service penetration, a reform to reduce the influence of dominant players in the telecoms market is set to increase competition, facilitate wider access and put downward pressure on prices. The IT sector now accounts for 6-7% of GDP and is expected to grow rapidly as constitutional reforms reshape the industry. Exponential growth has attracted international players and allowed for the emergence of an established domestic IT industry. However, asymmetric market conditions have made Mexico one of the least-connected countries in the region. There are approximately 40m internet users in Mexico, but only 17% of its 117m people currently have internet access at home. For telecoms firms in particular, the untapped market for additional services is increasingly attractive. This chapter features interviews with Gabriel Oswaldo Contreras Saldívar, President Commissioner, Federal Institute of Telecommunications; and Ankur Prakash, Executive Vice-President, TCS Latam.

Articles from this Chapter

Overview

Competitive spirit: Extensive reform is set to open up the market
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After years of underinvestment and a market structure that has stifled service penetration, Mexico’s telecoms sector is undergoing reform. Legislation to reduce the influence of dominant players is being implemented, and the authorities hope to have an impact on prices and facilitate wider access. The benefits of the legislative revamp might take time to materialise, but the potential for increased access to services among the underserved population promises to boost economic growth. For telecoms firms in particular, the untapped market for additional services is becoming more attractive. The new regulatory authority started to implement…

Overview

Access all areas: Putting IT use at the centre of business and society is a high priority
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After several years of expansion, Mexico’s IT sector now makes up 6-7% of GDP, and this is expected to grow rapidly as constitutional reforms reshape the industry. The sector combines positive and negative forces. On one hand, its growth has been exponential, attracting foreign companies and allowing a domestic industry to emerge. On the other, asymmetric market conditions have made Mexico one of the region’s least-connected countries for telecoms. According to the OECD’s “Review of Telecommunications Policy and Regulation in Mexico”, published in 2012, the sector is “characterised by high prices, among the highest within OECD…

Interview

OBG talks to Gabriel Oswaldo Contreras Saldívar, President Commissioner, Federal Institute of Telecommunications
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Interview:Gabriel Oswaldo Contreras Saldívar Why was a new regulator needed, and what powers does this agency have over its predecessor? GABRIEL OSWALDO CONTRERAS SALDIVAR: The functions of the previous regulator, the Federal Commission of Telecommunications (Comisión Federal de Telecomunicaciones, COFETEL), were closely linked with executive power: COFETEL was a decentralised agency within the Ministry of Communications and Transport, under the federal executive. The creation of the Federal…

Interview

OBG talks to Ankur Prakash, Executive Vice-President, TCS Latam
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Interview:Ankur Prakash How big is the potential of the information technology (IT) services market? ANKUR PRAKASH: Mexico, unlike Brazil, has a dynamic market with 90% of the industry domestic, and it exports only 10% of its total value, which is around $4.5bn. There is still remarkable room for growth, particularly for exports of business process outsourcing services. For instance, India is the world’s largest IT services exporter, with a total industry value of $100bn, 95% of which comes…

Analysis

Change the channel: Reform is already bringing dynamism to the TV market
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Included in the telecoms sector’s reform, Mexico’s broadcasting market is set for a major transformation. New regulations allowing foreign ownership, a stringent reining in of dominant market players and a move towards digital terrestrial TV are set to change the entire environment. Although less dynamic than TV, radio and press remain important media vehicles, especially through their regional reach. REGULATION: Soon after its inception, Mexico’s Institute for Telecommunications (Instituto Federal de las Telecomunicaciones, IFETEL) got down to work on measures to increase competition in broadcasting. The new regulator, created…