Mexico: Broadband, mobile services become mainstays of growth

Driven by the growth of fixed VoIP, broadband Internet and mobile data, Pyramid Research forecasts that Mexico's telecom market will increase 4.4 percent from $22.9 billion in 2009 to $23.9 billion in 2010. By 2015, the market will expand at a CAGR of 7.9 percent to generate $24.9 billion.

According to Pyramid's new "Mexico: A Mobile Surge with New Competition and More 3G Services" report, the growth of the Mexican telecom market will be wireline VoIP, broadband and mobile data. Traditional mobile and wireline PSTN voice, while growing at a slower pace, will continue to be constant revenue source for every Mexican-based service provider.  

Emerging challengers to Carlos Slim's Telmex (NYSE: TII) telecom monopoly, including Televisa, Spain's Telefonica (NYSE: TEF), and Megacable which jointly won an auction to rent fiber strands from Mexico's electric monopoly, is driving increased adoption of broadband services and the migration to IP-based services. Much like the North American market, what's resonating for Mexico's telecom customer base are bundled offers that incorporate both broadband and pay-TV.

Mexico's Telmex isn't standing pat against the competition, however. In response to growing cable competition, Telmex announced that they would begin upgrading its wireline broadband network with up to 20 Mbps speed capabilities.

For more:
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Related articles:
Telmex to up Mexico's broadband speeds to stay competitive with cable
Telmex Internacional's Q2 profits down, but sales were up
Carlos Slim's telecom consolidation dream is within reach
America Movil begins acquisition process for Telmex, Carso Telecom
Televisa, Telefonica and Megacable to jointly bid in Mexican fiber auction

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