Mexico Telecom Service Providers Pursue Growth Opportunities in Pay TV and Data Communications
Telecom players must embrace expanded service portfolios and new revenue sources, says Frost & Sullivan's Digital Transformation team
MEXICO CITY, Oct. 31, 2016 /PRNewswire/ -- The current Mexican telecommunication services market is still dominated by Telmex and its mobile arm Telcel, with the exception of the pay TV segment, where Televisa has the largest share. In this context, smaller competitors find it hard to capture market share and generate the much needed return on investment. Over-the-top (OTT) services providers and systems integrators bring further competition in the fight for market share, creating a complex scenario within a mature market.
According to the Mexico Total Telecommunications Services Market, a new analysis from Frost & Sullivan's Digital Transformation team, the market earned revenues of $26.9 billion in 2015 and is expected to reach $31 billion in 2021. Regulators have been trying to curb the dominance of Telmex and Telcel with only limited success. However, the recent merge between Axtel and Alestra brings a new and more powerful competitor into the marketplace.
"Although the regulatory effort to curve down Telmex/Telcel dominance over the Mexican market is still underway," explains Ignacio Perrone, Digital Transformation Industry Manager for Frost & Sullivan, "the competitive landscape has already been revitalized, in particular with the entrance of AT&T into the mobile segment and the merge of Axtel and Alestra, which gave birth to a more solid competitor with a solid customer base combining residential and enterprise customers."
To request complimentary information on this analysis and to register for a Growth Strategy Dialogue, please click here or send an e-mail to Francesca Valente, Corporate Communications: [email protected]
"Despite CAGR growing at single digits in all the segments, specific technologies or services in each segment present higher growth rates," says Perrone. "Thus, mobile data is expected to grow at double digits, while mobile voice is already declining. Among fixed-broadband technologies, ADSL is losing share, while cable modem and FTTH are growing steadily. In the Pay TV segment, CATV is expected to decline, while DTH and IPTV will continue to grow. Data communications technologies present a very diverse scenario, with Metro Ethernet growing at double-digit rates, while circuits and private lines are declining. The only exception is fixed telephony, where all services—local voice and international long distance—are decreasing."
With the traditional services market considered to be mature, service providers are likely to find more success for growth in less penetrated markets, such as pay TV and data communications. In pay TV, specifically, over-the-top services are increasing adoption and stimulating price repositioning of traditional services. In data communications, the small and medium-sized business segment is driving growth, as large enterprises are already saturated. In addition, telecom players continue to invest in network expansion and upgrades, while looking toward new revenue sources such as mobile data, fiber-to-the-home (FTTH), Internet protocol television (IPTV) and value-added services.
About Frost & Sullivan's Digital Transformation Team:
Mexico Total Telecommunications Services Market is part of the Digital Transformation team's Growth Partnership Services subscription. Related studies include: Telecommunications Market's Digital Transformation and Evolution, Navigating an Era of Digital Transformation in Latin America, Roadblocks to Making Omnichannel a Reality in Brazil, and Brazil Total Telecommunications Services Market, among many others. All studies in the subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the global Growth Partnership Company, has spent more than 50 years guiding our clients toward transformational growth strategies. We focus on innovation opportunities driven by disruptive technologies, mega trends, emerging markets and new business models. Through our Growth Partnership model, we collaborate with clients to leverage visionary innovation that takes advantage of our convergence expertise, an experiential learning platform, 360-degree industry coverage and complete global perspective. Is your organization prepared for the next profound wave of industry disruption, increasing competitive intensity, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion
Mexican Total Telecommunications Services Market
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Contact:
Francesca Valente
Corporate Communications Executive – Latin America
P: +54 11 4777 5300
F: +54 11 4777 0071
E: [email protected]
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SOURCE Frost & Sullivan
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