Lewes, DE -- (SBWIRE) -- 02/25/2014 -- Mexico's telecoms market is underdeveloped in relation to many of its regional peers. Low penetration rates, high tariffs and a lack of competition afflict the market as América Móvil remains dominant in the market through its Telmex and Telcel subsidiaries. Reseach expressed high hopes for reforms signed into law in July 2013, which are aimed at introducing a higher level of competition. Nevertheless, analysts are only cautiously optimistic, given the attempts at reforming the sector previously and will be some time before the full effects of these reforms materialise. This has not prevented alternative players from indicating their plans for a more competitive market, with Iusacell revealing plans to triple its market share over three years.
Mexico's new regulator Ifetel announced in November 2013 that it would consider plans to create an independent wholesale services operator using 700MHz spectrum for wireless broadband. In addition, dark fibre owned by the state power company Comisión Federal de Electricidad (CFE) could be used. The creation of a single network that sells capacity wholesale to operators is being considered in several markets and has a number of advantages. However, research cautions that the structure of any such plan would need to consider long-term investment needs for the telecoms market.
>> Net additions were at their lowest rate in Q313, adding just 257,000 new connections in the quarter. For a market with continued growth potential, this was a marked slowdown.
>> The fixed-line market continues to decline, with little to stop it falling to just 15% penetration by the end of our new five-year forecast period in 2018.
>> Double digit growth is expected across the broadband sector with dedicated mobile broadband subscriptions increasing as mobile operators offer greater alternatives to fixed networks. The market will reach almost 29mn by 2018.
The report covers detailed industry SWOT analysis,industry forecast, regulatory development, industry trends and overview, competitive landscape and company profiles of major players including Telcel (América Móvil), Telmex, Nextel, Axtel, Movistar (Telefónica Móviles México) and Iusacell.
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Browse all Country Overview (Telecom) Reports at: http://www.marketresearchreports.com/country-overview-telecom
Browse reports from Mexican industry at: http://www.marketresearchreports.com/countries/mexico
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