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Mexico Telecommunications Report Q2 2015

119 Pages BMI Research SKU: BMI5465530

Mexico Telecommunications Report Q2 2015

BMI View: BMI believes that the Mexican mobile market will be the most dynamic in the region in 2015.

The mobile penetration in Mexico is relatively low, but intensifying competition is likely to see prices formobile plans decrease, which in turn will encourage growth. Following the ratification of the newtelecommunications law in July 2014, dominant broadband and telephony operator América Móvil anddominant broadcaster Televisa are forced to undertake measures to decrease their respective marketshares. The new telecommunications law also increased the powers of the telecommunications regulatorIfetel, who has already imposed three hefty fines on América Móvil since September 2014. BMI believesthat this will spur the company to decrease its market share imminently before the financial penalties willstart having affecting the profit margins. This will no doubt have a positive impact on the market.

Key Data

Mexico's mobile market contracted by just under 1.0% in the third quarter of 2014, with subscriptionsdeclining 600,000 year-on-year. Decreases are due to a number of operators disconnecting inactive prepaidusers.

According to the Federal Telecommunications Institute (Ifetel), there were 15.4mn subscribers in theMexican pay-TV market at the end of Q214, an increase of 8.7% y-o-y. At the end of 2013, IFT recorded13.5mn internet subscriptions.

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Mexico Telecommunications Report Q2 2015

BMI Research

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