Telefónica makes moves to exit the Mexican telecom market

Sydney, June 11, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on Mexico outlines the major developments and key aspects in the telecoms markets.
Read the full report: https://www.budde.com.au/Research/Mexico-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

With a population approaching 125 million and with relatively low broadband and mobile penetration, Mexico’s telecom sector retains significant potential for growth. The market is still dominated by the incumbent Telmex and by Grupo Televisa, which together retain about two thirds of subscribers overall. A regulator newly set up in 2013 has enforced measures aimed at removing barriers to foreign investment and at reducing the market share of these dominant operators. The reforms are helping to make Mexico’s telecom market more competitive. One result of competitive pressure is the decision of Telefónica Group to exit the Mexican telecoms market, a process which is being undertaken in stages which includes the sale of fibre assets, the migration of mobile subscribers to AT&T Mexico’s network and the return of spectrum concessions to the regulator. The Group sold units in Guatemala and El Salvador in March 2019.

In the fixed broadband sector significant changes are underway, with the main cable TV providers Megacable and Grupo Televisa widening their bundled services offerings, and with some important market consolidation. The fibre sector has shown particularly strong growth during the last two years as the key operators expand their network reach beyond the core densely urban areas.

The mobile market also continues to undergo considerable changes in the wake of regulatory efforts to curb the market dominance of Telcel. Although the MVNO segment has only a very small market share it continues to attract investment, and new players enter the market each year. A wholesale mobile network operating in the 700MHz band was set up in 2018 and will reach the vast majority of the population by 2025. Developments in 5G have been slow given the existing capacity of LTE, though the auction of spectrum in the 600MHz band (among the first globally) by late 2020 will stimulate the sector as operators launch services from 2021.

This report provides statistics and analyses on Mexico’s fixed-line market, as well as an overview of regulatory developments. The report also reviews the mobile market, including a range of statistical data as well as subscriber forecasts. In addition, the report covers the fixed and mobile broadband sectors, including an assessment of technological and regulatory developments.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

• Televisa launches services as an MVNO;
• Telefónica returns 800MHz, 1900MHz and 2.5GHz licences to the regulator;
• Hughes Network Systems begins delivering first of 4,000 Wi-Fi hotspots to serve rural areas;
• Movistar and AT&T sign network sharing deal;
• Regulator confirms 600MHz auction for end-2020;
• Movistar to hand back spectrum concessions as it exits Mexican market;
• MNOs prepare to shut down legacy GSM networks;
• Regulator rekindles SIM card registration program;
• América Móvil develops m-payment platform with banks;
• Report update includes the regulator's market data report to June 2019, telcos' financial and operating data to Q1 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, market developments.

Companies mentioned in this report:

América Móvil (Telcel, Telmex), Megacable, Cablemás, Cablevisión, Grupo Televisa, Maxcom, Sistemas Interactivos de Telecomunicaciones (SIT), Axtel, Megafón, InterCable, CFE, , AT&T Mexico (Iusacell, Nextel Mexico), Movistar (Telefónica Mexico), Globalstar, Unefón, Virgin Mobile, Weex, Alestra, Maxcom, Marcatel.

• Key statistics
• Regional Latin America Market Comparison
  • Telecom Maturity Index by tier
    • Market Leaders
    • Market Challengers
    • Market Emergents
    • South America Telecom Maturity Index
    • Central America Telecom Maturity Index
  • TMI versus GDP
  • Mobile and mobile broadband penetration
  • Fixed and mobile broadband penetration
• Country overview
• COVID-19 and its impact on the telecom sector
  • Economic considerations and responses
  • Mobile devices
  • Subscribers
  • Infrastructure
• Telecommunications market
  • Historical overview
  • Market analysis
  • Telecoms reform
• Regulatory environment
  • Regulatory authorities
  • Fixed-line developments
    • Privatisation
    • Deregulation
    • Foreign investment rules
  • Mobile network developments
    • Spectrum auctions
    • Mobile Termination Rates (MTRs)
    • Mobile Number Portability (MNP)
    • Roaming
    • Telecom legislative reform
    • SIM card registration
• Mobile market
  • Market analysis
  • Mobile statistics
    • General statistics
  • Mobile infrastructure
  • Digital networks
    • 4G (LTE)
    • 2G
  • Other infrastructure developments
    • Open networks
    • Satellite mobile
    • IoT
  • Mobile data
    • SMS and MMS
  • Mobile broadband
  • Major mobile operators
    • Telcel
    • Movistar
    • AT&T Mexico
    • Mobile Virtual Network Operators (MVNOs)
  • Mobile content and applications
    • Mobile economy
• Fixed-line broadband market
  • Market analysis and statistical overview
  • Government support
    • Municipal broadband
  • Broadband statistics
  • Fixed-line broadband technologies
    • Hybrid Fibre Coax (HFC) networks
    • Digital Subscriber Line (DSL) network
    • Fibre-to-the-Premises (FttP) networks
    • Other fixed broadband services
• Fixed network operators
  • Introduction
  • Telmex/América Móvil
  • Megacable
  • Grupo Televisa
• Telecommunications infrastructure
  • Overview of the national telecom network
  • National network infrastructure developments
  • Smart infrastructure
  • Smart grid technology
  • Data centres
• Glossary of abbreviations
• Related reports

List of Tables

• Table 1 – Top Level Country Statistics and Telco Authorities - Mexico – 2020 (e)
• Table 2 – Change in the number of employed in the telecom sector – 2011 – 2019
• Table 3 – Change in telecom sector’s contribution to GDP – 2009 – 2019
• Table 4 – Share of telecom market revenue by sector – 2017- 2018
• Table 5 – Change in telecom revenue and annual growth – 2009 - 2019
• Table 6 – Development of fixed-line and mobile sector revenue – 2015 – 2018
• Table 7 – Foreign investment in telecoms – 2011 – 2019
• Table 8 – Increase in the number of mobile number of portings – 2009 – 2017
• Table 9 – Growth in the number of mobile subscribers and penetration – 2009 – 2024
• Table 10 – Change in mobile market share of subscribers by major operator – 2009 – 2019
• Table 11 – Development of mobile market revenue and investment – 2009 – 2018
• Table 12 – Development of the number of repaid / postpaid subscribers – 2010 – 2019
• Table 13 – Change in the proportion of prepaid / postpaid subscribers – 2009 – 2019
• Table 14 – Distribution of spectrum by band – 2020
• Table 15 – Distribution of spectrum by operator – 2020
• Table 16 – Growth in the number of Movistar’s LTE subscribers and penetration – 2016 – 2019
• Table 17 – Decline in SMS traffic – 2006 – 2020
• Table 18 – Change in the proportion of mobile data traffic by network technology – 2015 – 2019
• Table 19 – Growth in the number of active mobile broadband subscribers and penetration – 2009 – 2024
• Table 20 – Change in the market share of mobile broadband subscribers by operator – 2014 – 2019
• Table 21 – Growth in the number of mobile broadband subscribers by main operator – 2013 – 2019
• Table 22 – Growth in the number of Telcel’s subscribers and annual change – 2009 – 2020
• Table 23 – Development of Telcel’s churn, monthly minutes of use and ARPU – 2008 – 2020
• Table 24 – Change in the number of Telcel’s prepaid and contract subscribers – 2016 – 2020
• Table 25 – Development of Telcel’s wireless revenue – 2010 – 2020
• Table 26 – Growth in the number of Movistar’s mobile subscribers – 2009 – 2019
• Table 27 – Movistar minutes of use and ARPU – 2008 – 2019
• Table 28 – Development of Movistar’s financial data – 2006 – 2020
• Table 29 – AT&T Mexico revenue – 2015 – 2019
• Table 30 – AT&T Mexico ARPU – 2018 – 2019
• Table 31 – Growth in the number of AT&T Mexico’s mobile subscribers – 2009 – 2019
• Table 32 – MVNO share of the mobile market by subscribers – 2014 – 2018
• Table 33 – Change in the number of mobile subscribers by main MVNO – 2014 – 2018
• Table 34 – Change in the proportion of broadband lines by data rates – 2014 – 2019
• Table 35 – Broadband lines by data rates – 2017 – 2018
• Table 36 – Growth in the number of fixed-line broadband subscribers and penetration – 2009 – 2024
• Table 37 – Change in market share of broadband subscribers by operator – 2014 – 2019
• Table 38 – Change in market share of broadband subscribers by platform – 2014 – 2019
• Table 39 – Growth in the number of cable modem broadband subscribers – 2009 – 2019
• Table 40 – Growth in the number of Megacable’s cable modem subscribers – 2009 – 2019
• Table 41 – Change in Megacable’s ARPU – 2007 – 2019
• Table 42 – Growth in the number of Cablemás’s cable modem subscribers – 2009 – 2019
• Table 43 – Change in the number of Televisa’s RGUs by sector – 2016 – 2019
• Table 44 – Growth in the number of Cablevisión’s cable broadband subscribers – 2009 – 2019
• Table 45 – Decline in the number of DSL broadband subscribers – 2009 – 2020
• Table 46 – Growth in the number of Infinitum’s DSL subscribers – 2009 – 2020
• Table 47 – Growth in the number of FttP broadband subscribers – 2013 – 2019
• Table 48 – Decline in the number of wireless broadband subscribers – 2013 – 2020
• Table 49 – Change in the number of satellite broadband subscribers – 2013 – 2019
• Table 50 – Change in market share of fixed lines by operator – 2014 – 2019
• Table 51 – Change in the number of Telmex’s fixed-line RGUs – 2009 – 2020
• Table 52 – Decline in the number of Telmex’s fixed-line subscribers – 2015 – 2019
• Table 53 – Development of Telmex’s revenue, EBITDA – 2011 – 2020
• Table 54 – Growth of Megacable’s revenue by sector – 2010 – 2019
• Table 55 – Growth in the number of Megacable’s fixed-line subscribers – 2012 – 2019
• Table 56 – Decline in Megacable’s fixed-line ARPU – 2012 – 2019
• Table 57 – Growth in the number of Televisa’s telephony subscribers – 2016 – 2019
• Table 58 – Development of Televisa’s financial data – 2017 – 2019
• Table 59 – Change in the number of fixed lines in service and teledensity – 2009 – 2024
• Table 60 – Historic - Mobile subscribers and penetration rate – 2000 – 2009
• Table 61 – Historic - Proportion of prepaid / postpaid subscribers – 2000 – 2009
• Table 62 – Historic - DSL broadband subscribers – 2001 – 2009
• Table 63 – Historic - Mobile market share of subscribers by major operator – 2001 – 2009
• Table 64 – Historic - Mobile market revenue – 2001 – 2009
• Table 65 – Historic - Telecom revenue and annual growth – 1998 - 2009
• Table 66 – Historic - Internet users and annual change - 2000 – 2018
• Table 67 – Historic - Dial-up internet subscribers – 2000 – 2012
• Table 68 – Historic - Fixed-line broadband subscribers – 2003 – 2009
• Table 69 – Historic - Average fixed-line traffic per line– 2014 – 2016
• Table 70 – Historic - Market share of fixed line traffic by operator – 2014 – 2016
• Table 71 – Historic - Telecom sector contribution to GDP – 2004 – 2009
• Table 72 – Historic - cable modem broadband subscribers – 2001 – 2009
• Table 73 – Historical - Fixed lines in service, annual change and teledensity – 1996 – 2009
• Table 74 – Historic - Megacable cable modem subscribers – 2001 – 2009
• Table 75 – Historic - Cablemás cable modem subscribers – 2002 – 2009
• Table 76 – Historic - Cablemás financial data – 2012 – 2014
• Table 77 – Telcel Historic - subscribers and annual change – 2000 – 2009
• Table 78 – Historic - AT&T Mexico subscribers – 2000 – 2009
• Table 79 – Historic - Movistar subscribers – 2001 – 2009
• Table 80 – Historic - Infinitum DSL subscribers – 2002 – 2009
• Table 81 – Historic - Cablevisión cable broadband subscribers – 2002 – 2009

List of Charts

• Chart 1 – Latin America –Overall Telecoms Maturity Index
• Chart 2 – Latin America Telecoms Maturity Index – Market Leaders Category
• Chart 3 – Latin America Telecoms Maturity Index – Market Challengers Category
• Chart 4 – Latin America Telecoms Maturity Index – Market Laggards Category
• Chart 5 – South America –Telecoms Maturity Index by country
• Chart 6 – Central America –Telecoms Maturity Index by country
• Chart 7 – Latin America Telecoms Maturity Index vs GDP per Capita
• Chart 8 – South America mobile subscriber penetration versus mobile broadband penetration
• Chart 9 – Latin America fixed broadband penetration versus mobile broadband penetration
• Chart 10 – Change in the number of employed in the telecom sector – 2011 – 2019
• Chart 11 – Change in telecom revenue and annual growth – 2009 - 2019
• Chart 12 – Development of fixed-line and mobile sector revenue – 2015 – 2018
• Chart 13 – Increase in the number of mobile number of portings – 2009 – 2017
• Chart 14 – Growth in the number of mobile subscribers and penetration – 2009 – 2024
• Chart 15 – Change in mobile market share of subscribers by major operator – 2009 – 2019
• Chart 16 – Development of mobile market revenue and investment – 2009 – 2018
• Chart 17 – Development of the number of repaid / postpaid subscribers – 2010 – 2019
• Chart 18 – Change in the proportion of prepaid / postpaid subscribers – 2009 – 2019
• Chart 19 – Growth in the number of Movistar’s LTE subscribers and penetration – 2016 – 2019
• Chart 20 – Change in the proportion of mobile data traffic by network technology – 2015 – 2019
• Chart 21 – Growth in the number of active mobile broadband subscribers and penetration – 2009 – 2024
• Chart 22 – Change in the market share of mobile broadband subscribers by operator – 2014 – 2019
• Chart 23 – Growth in the number of mobile broadband subscribers by main operator – 2013 – 2019
• Chart 24 – Growth in the number of Telcel’s subscribers and annual change – 2009 – 2020
• Chart 25 – Change in the number of Telcel’s prepaid and contract subscribers – 2016 – 2020
• Chart 26 – Development of Telcel’s wireless revenue – 2010 – 2020
• Chart 27 – Growth in the number of Movistar’s mobile subscribers – 2009 – 2019
• Chart 28 – Development of Movistar’s financial data – 2009 – 2020
• Chart 29 – Growth in the number of AT&T Mexico’s mobile subscribers – 2009 – 2019
• Chart 30 – MVNO share of the mobile market by subscribers – 2014 – 2018
• Chart 31 – Change in the number of mobile subscribers by main MVNO – 2014 – 2018
• Chart 32 – Change in the proportion of broadband lines by data rates – 2014 – 2019
• Chart 33 – Growth in the number of fixed-line broadband subscribers and penetration – 2009 – 2024
• Chart 34 – Change in market share of broadband subscribers by operator – 2014 – 2019
• Chart 35 – Change in market share of broadband subscribers by platform – 2014 – 2019
• Chart 36 – Growth in the number of cable modem broadband subscribers – 2009 – 2019
• Chart 37 – Growth in the number of Megacable’s cable modem subscribers – 2009 – 2019
• Chart 38 – Change in Megacable’s ARPU – 2007 – 2019
• Chart 39 – Growth in the number of Cablemás’s cable modem subscribers – 2009 – 2019
• Chart 40 – Change in the number of Televisa’s RGUs by sector – 2016 – 2019
• Chart 41 – Growth in the number of Cablevisión’s cable broadband subscribers – 2009 – 2019
• Chart 42 – Decline in the number of DSL broadband subscribers – 2009 – 2020
• Chart 43 – Growth in the number of Infinitum’s DSL subscribers – 2009 – 2020
• Chart 44 – Change in market share of fixed lines by operator – 2014 – 2019
• Chart 45 – Change in the number of Telmex’s fixed-line RGUs – 2009 – 2020
• Chart 46 – Development of Telmex’s revenue, EBITDA – 2011 – 2020
• Chart 47 – Growth of Megacable’s revenue by sector – 2010 – 2019
• Chart 48 – Growth in the number of Megacable’s fixed-line subscribers – 2012 – 2019
• Chart 49 – Change in the number of fixed lines in service and teledensity – 2009 – 2024

List of Exhibits

• Exhibit 1 – Generalised Market Characteristics by Market Segment
• Exhibit 2 – South America - Key Characteristics of Telecoms Markets by Country
• Exhibit 3 – Central America - Key Characteristics of Telecoms Markets by Country

Nicolas Bombourg
nbombourg@budde.com.au

Within Australia
(02) 8076 7665

Outside Australia
+44 207 097 1241