Telecommunications Equipment

An Expert's View about Telecommunications in Mexico

Posted on: 30 Jun 2012

All communications companies offer broadband Internet access and cost is differentiated by the capacity of broadband.

Telecommunications Equipment A Top Export Prospect for Mexico June 2012 Overview 2009 2010 (e) 2011(e) Total Market Size 10,190 11,413 12,324 Total Local Production 6,977 7,815 8,439 Total Exports 4,061 4,549 4,912 Total Imports 7,274 8,147 8,797 Imports from the U.S. 4,374 4,899 5,290 Figures obtained in dollars (millions) Source: The Competitive Intelligence Unit, COFETEL Source: Total Market Size figures – Selected figures In September 2010 Mexico registered 33 million people with Internet access; this represents a more than 20% growth compared to the same period in 2009. According to the telecom regulator, Cofetel, and the National Institute of Statistics and Geography (INEGI), 67% of Internet users are between 12 and 34 years old. Today Mexico shares a 50%-50% gender split between men and women that use PCs/ Internet. Regarding online purchases, approximately 1.63 million people made a purchase or a payment online. In the 2010 census, INEGI reported over 112 million people in Mexico and 25 million households. Today there are an estimated 6 million Internet connections, reaching approximately 25% of the population. Much of the growth in Internet penetration will be from Cable TV Triple Play Service, given that over 40% of households in Mexico have access to cable. According to Iván Marchant, Country Manager for comScore México,”The outlook for Internet in Mexico continues to prosper as one of the fastest growing markets worldwide…” Today, the Microsoft portal has over 16.2 million users, while Google has over 15.2 million users, and with a 200% growth between 2009 and 2010, Facebook now reaches 11.6 million users. Today, we can safely mention that Dial Up service is basically extinct in Mexico. All communications companies offer broadband Internet access and cost is differentiated by the capacity of broadband. The most common service is a 1Mb connection but 2 Mb is becoming standard. There are other residential packages that offer up to a 40 Mb connection. All communications companies offer standard communications and Internet services. Fixed line companies like Telmex, Alestra, Axtel, and Maxcom seek to bundle Double or Triple Play Top xport ons 2 US E Prospects in Mexico 2012: Telecommunicati Equipment services, but in the case of Maxcom, it offer Quadruple Play services. However, the biggest winners in the Triple Play offer have been Cable TV (CATV) fixed operators. They have grown in Pay-TV services and Internet connection subscribers. The biggest players in the CATV industry are Megacable, Cablemás, and Cablevisión. Additionally, wireless operators are compensating the slow voice growth with smartphones, data services, and applications. More and more people are trading in their cell phones for smartphones and other devices that have wireless connectivity, such as tablets, netbooks, and modems. Back to top Best Prospects/Services For U.S. companies seeking to enter Mexico through the offer of software, hardware, applications, or other products or services to operators, the main companies in the telecom market in Mexico are: • Wireless:Telcel, Movistar, Nextel, Iusacell / Unefon • Fixed: Telmex, Alestra, Axtel, Maxcom • Cable TV: Megacable, Cablemás, Cablevisión For the above-mentioned carriers, their demand for services will grow in different areas such as: • Business Intelligence Software • CATV Network Applications • Consulting & IT/Systems Integration • Information Security Services • Leased Infrastructure (NOCs, SOCs) • Maintenance & Service • Tailored Software Applications for Vertical Markets • Training (bundled with an overall solution) • Wireless Applications (mainly focused on mobile broadband, such as TV) The Mexican user market is quickly moving to service contracts as the predominant business model. Software, Infrastructure and Platform as a Service (SaaS, IaaS, and PaaS) will provide the best opportunities. Also, the general technology trends are present in Mexico where new opportunities will arise. These are: • Cloud Computing and network terminals using web-based applications • Green IT equipment for Data Centers • Mobile Broadband • Online Advertising Top US ospects 3 Export Pr in Mexico 2012: Telecommunications Equipment • Social Networks • Virtualization • Web 2.0 • Wimax equipment, 3G and LTE (4G) equipment for mobile carriers Back to top Opportunities There are various opportunities in the telecom sector. Carriers are increasing their spectrum capacity and targeting 3G and LTE (4G) networks, where the main players are Telmex, Axtel, Alestra, Maxcom, América Móvil, Iusacell, Nextel, and Telefónica. The telecom equipment OEM’s (Nokia-Siemens, NEC, Cisco, Ericsson, Huawei, Alcatel-Lucent, ZTE, and Juniper Networks) actively pursue these opportunities. However, inventory management of parts and nd 2 tier equipment can fulfill carriers’ specific requirements. Also, cloud computing solutions, mobile applications, equipment maintenance, and services are good prospective opportunities for U.S. companies who wish to enter Mexico through a local strategic partner. Finally, data center solutions (hardware, software, and services), including green solutions, will provide good opportunities in the next few years. Resources • Comisión Federal de Telecomunicaciones – Telecom Regulator: • Cámara Nacional de la Industria Electrónica de Telecomunicaciones e Informática: • AMIPCI – Asociacion Mexicana de Internet (Mexican Association of Internet): • CANITEC – Cámara Nacional de la Industria de Televisión por Cable: Back to top Top ects mmun 4 US Export Prosp in Mexico 2012: Teleco ications Equipment For More Information Please contact Jesus S. Gonzalez, Commercial Specialist for telecommunications equipment industries at the U.S. Commercial Service in Mexico at or (11-52-55) 5140-2627. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 30 June 2012

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