Telefonica launches fixed internet trial in Mexico

Telefonica, which operates under the Movistar brand in Mexico, has initiated a fixed internet trial in numerous cities across the country with a view to competing in the residential broadband sector, reports business daily El Financiero. The operator is currently offering fixed internet access via its mobile network in the city of Toluca, but will soon expand the trial to other cities such as Tijuana, Guadalajara, San Luis Potosi and Apodaca, said the report, adding that once the residential markets with the largest potential are identified, the service may be officially launched as early as the end of the first quarter.

The company is hoping to offer improved speeds and quality as well as lower prices in a country in which fixed broadband penetration stands at just 49 percent of households, said the report. To do so, it will have to compete with market leaders Telmex and Televisa, with 56 percent and 22 percent of the fixed broadband sector respectively, as well as smaller providers such as Megacable (14%), Totalplay (4%) and Axtel (2.5%).