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Research and Markets: Mexico Telecommunications Report Q2 2012 - Broadband Subscriptions to Increase to 28.2mn by 2016, Or 23.25% Penetration
[April 12, 2012]

Research and Markets: Mexico Telecommunications Report Q2 2012 - Broadband Subscriptions to Increase to 28.2mn by 2016, Or 23.25% Penetration

(M2 PressWIRE Via Acquire Media NewsEdge) Dublin - Research and Markets (http://www.researchandmarkets.com/research/c64c6e99/mexico_telecommuni) has announced the addition of the "Mexico Telecommunications Report Q2 2012" report to their offering.

In Q311, the Mexican market reached mobile penetration of 87.5%, up from 86.5% penetration in Q211. This was due to 1.172mn net additions being recorded. This figure is lower than the net additions in Q211, but still shows there is robust growth left in the Mexican mobile market.

In Q112, the credibility of regulator Cofetel was dealt a number of blows. Firstly, its president, Mony de Swaan, was put under investigation following claims that he awarded two contracts worth roughly US$200,000 for businesses run by close friends.


There are mixed signs this quarter that regulators are improving competition. Telcel reached an agreement with a selection of fixed-line and mobile operators to reduce interconnection fees after it was declared a dominant player in the mobile market in November 2011. The company announced it is to progressively lower interconnection fees until 2014, when the rate will be around MXP0.24. This marks a U-turn in attitude for Mexico's largest mobile operator, which fiercely contested the interconnection fee cuts implemented by regulator Cofetel in Q111. BMI welcomes the cuts, but we do not believe Telcel's dominance faces a serious challenge in the near future.

In terms of forecasts, BMI has downgraded our mobile forecasts, but only slightly, as a result of concerns over the competitive environment. We now expect 112.3mn subscribers at the end of 2016, or 92.6% penetration. In the broadband sector, we have raised our forecasts, as a result of strong growth in fixed broadband take-up in the first three quarters of 2011. We expect broadband subscriptions to increase to 28.2mn by 2016, or 23.25% penetration. This figure includes mobile broadband subscriptions, which we believe will cannibalise fixed-line through our forecast period.

Companies Mentioned -Telmex -Axtel -Telcel (Am?rica M?vil) -Telef?nica M?viles M?xico (Movistar) -Iusacell -Nextel For more information visit http://www.researchandmarkets.com/research/c64c6e99/mexico_telecommuni CONTACT: Research and Markets, Laura Wood, Senior Manager.

press@researchandmarkets.com Fax from USA: 646-607-1907 Fax from rest of the world: 353-1-481-1716 Sector: Telecommunications and Networks (http://www.researchandmarkets.com/categories.asp?cat_id=20&campaign_id=c64c6e99) ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com)).

(c) 2012 M2 COMMUNICATIONS

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