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August 29, 2012

Telecommunications Industry in Mexico Grows 13.4 Percent in First Half of 2012

By Ashok Bindra, TMCnet Contributor

Fox News Latino recently reported that the demand for long distance and mobile telephony as well as satellite television has resulted in the strong growth of Mexico's telecommunications space. As a result, Mexico’s telecom market has grown by 13.4 percent in the first half of 2012 as compared to the same period last year. This important data came from the Federal Telecommunications Commission, or Cofetel.

Based on the Cofetel data, Fox News Latino reported that the telecom industry grew much faster during this period than Mexico’s overall economy, which expanded at a 4.3 percent rate throughout the January-June period.

Likewise, the report shows that the incoming long-distance telephone service grew 28.3 percent during the April-June period. It marks the fastest growth since 2006. According to Cofetel, 95 percent of incoming calls originate in the U.S.

Other sectors that have expanded during this time period include mobile telephony, satellite television and broadband services. While mobile telephony posted 19.5 percent in terms of minutes, satellite television touched a growth rate of around 25 percent in the second quarter. Additionally, broadband services registered strong growth in terms of subscribers. At 19.5 percent growth, mobile telephony reached 97.6 million subscribers, an increase of 1.98 million subscribers compared to the same period in 2011. The penetration rate for cell phone service reached 86.9 percent.

Similarly, according to the Federal Telecommunications Commission, broadband service subscribers rose from 5.6 million on June 30, 2011 to 9.7 million by the end of June 30, 2012, a growth rate of 73.9 percent. 

Further, the report shows that the growth in Mexico’s mobile telephony has come at the cost of landline services, which continue to decrease due to mobile telephony. The number of fixed lines in service reached 20.7 million in June, which is up only 0.7 percent compared to the figure a year earlier. Findings also highlight that cable TV operators have been taking a bigger share of the landline business by bundling it in packages marketed to customers. At this time, Mexico currently has 17.9 landlines per 100 people.  

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Edited by Jamie Epstein
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