Telecoms & IT
From The Report: Mexico 2015
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With the initial signs of effective reform now reaching the market, Mexico’s telecommunications and IT sector is seeing the competitive progress that had eluded it for several years. Although long-time dominant player América Móvil remains the undisputed industry leader, the asymmetric laws introduced by the government are slowly opening the market to more effective competition. This is galvanising market players and reducing prices for consumers, as well as spurring interest among foreign investors. Prices for mobile telecoms fell by 17% between February 2013 and January 2015, according to the Federal Institute for Telecommunications, while prices for global telecoms services fell 15% over the same period. However, market shares for América Móvil have remained fairly steady, particularly in mobile, a trend expected to change in 2016 once competitors are granted access to América Móvil’s wholesale services and infrastructure to complement their own facilities.

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Overview

Game changer: Sector reform is already opening up new opportunities
OBG
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With the initial signs of effective reform now reaching the market, the telecommunications sector in Mexico is seeing the competitive progress that has eluded it for several years. The application of the telecommunications reform has translated into clear legislative steps to reduce the market power of long-time dominant player América Móvil. Although the company remains the undisputed industry leader, the asymmetric laws implemented by the government are slowly opening the market to more…

Analysis

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OBG
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Recent regulatory reforms are starting to produce results in Mexico’s telecoms sector. Although a new legislative bill was signed into law by President Enrique Peña Nieto in June 2013, it was not until mid-2014 that the secondary laws were implemented. The new laws were put in place as a way to curb the supremacy of Amé rica Móvil, which was declared a dominant player by the new sector regulator in 2014 due to its control of over 70% of the mobile telecoms market and fixed lines. The reform’s…

Overview

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OBG
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Fuelled by economic expansion in key sectors, the IT industry is becoming increasingly important for Mexico’s development. Although the segment has had to battle with an underdeveloped telecoms sector, which has translated into low penetration levels for internet and expensive consumer access for services, regulatory changes are bringing about a new cycle of growth for IT and telecoms. Government policy has made expansion of the IT sector a priority, not just as a means of economic growth, but…