Friday, September 11, 2009

IT and Telecom in Mexico.

Market overview.
The Mexican ICT industry grew to an estimated value of US$39 billion in 2008, with telecommunications equipment representing about 20% of this industry.  In Mexico there is a diminishing trend, however, in organic growth. As the fixed and mobile service markets tend to mature, the growth rate will decrease over the next three years. Today, Mexico has about 72 million wireless subscribers and over 20 million fixed lines. It is expected that mobile lines will reach their maximum at 85 million subscribers, and fixed lines will tend to grow marginally thereafter.

Growth for telecom equipment vendors resides more in niche markets such as VoIP for telecom carriers and CATV operators. Additionally, equipment vendors are seeking new and untapped markets in Mexico, such as communications solutions for transportation:  subway, railroads, light rail, airports and marine ports.
The Under Ministry of Communications of the SCT and the regulator, Cofetel, have announced that they will hold spectrum auctions in the beginning of 2009. The main services to be promoted in this auction will be for the following bands: 1.9 megahertz (PCS) for wireless services and 3G Internet access; 3.4 – 3.7 gigahertz for WiMAX; and 1.7 – 2.1 gigahertz for broadband wireless services.  

The current financial crisis will definitely impact the sector. 2008 was the year that equipment manufacturers were refocusing their corporate strategy and developing new marketing to attract medium size companies. 2009 will be a year that will see a decrease in growth after more than 5 years. Both telecom services and telecom equipment will show small. Integrators are expected to work with equipment manufacturers in order to have better financing terms for large users. Medium size companies will have a more strict policy for loans/credits to purchase new equipment, which will decrease their spending on their current infrastructure.

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