Mexico’s telecommunications sector grew 11.9% during the first quarter of 2012 over the same period of 2011, according to data from the Telecommunications Sector Production Index (ITEL). This is also the highest growth in the last three quarters. The growth was driven by an increase in satellite TV subscribers, long distance call traffic and mobile telephony minutes (see full report).
According to ITEL’s report, during the first quarter, the satellite television segment was the most dynamic with a growth of 26.9%, followed by international incoming call traffic with 26.6% and mobile traffic with 15.8%. The percentages were made in comparison to records of the first three months of 2011.
The report noted that the positive results in the telecom sector follow the good performance and dynamism of Mexico’s national economic activity for the first three months of this year, a period in which the country’s gross domestic product (GDP) grew by 4.6%, a rate higher than that recorded for all of 2011.
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In this more mature market, the number of mobile subscribers has also grown, but not at the same rate as in previous years. From January to March 2012, minutes used in the mobile phone network increased 15.8% from the same quarter last year. During the same period 1.8 million subscriptions were added, while the base stood at 95.6 million users; a penetration of 85.1 per 100 inhabitants.
The ITEL report stated that major mobile phone companies in Mexico have focused efforts on increasing their postpaid user base, citing as an example, America Movil, whose postpaid subs have increased 16.7% compared to last year. The trend can be partially explained by the greater demand for data services. Mobile broadband services have grown from 8.7 million subscriptions last year to 4.1 million by March 31, 2012, which represents a 107.3% increase.
The local consulting and market research firm Competitive Intelligence Unit (CIU) noted that during the first quarter of 2012, the telecommunications sector generated $102,094 million Mexican pesos, growing at the same rate as the economy as a whole: 4%. However, when measured in U.S. dollars, the segment showed an annual decrease of 4%, producing U.S.$1.847 million during the first quarter of this year.
Mexican market telecoms value | Source: CIU
When analyzing the growth in the number of subscribers of each segment within the sector, CIU noted the most dynamic was the pay TV segment, which showed an annual growth above 40% during 2011; however, it showed signs of stabilization in the first quarter of 2012, growing 14.3% compared to 1Q11.
For the broadband segment, the consultant firm pointed out that growth has remained in double digits since the start, partly attributed to reduced customer base in the segment. “Broadband in the country has achieved a growth of 14.1% in 1Q12, very similar to pay television, confirming the depth of these technology applications in Mexican society and its companies,” the report said.
CIU noted the mobile telecommunications’ reduced rate follows a period where it repeatedly reached double digits and shows the market is at an intermediate maturation phase and approaching a structural ceiling.
>>>To better understand what is going on Mexican wireless scenario, download for free the RCR Wireless News feature report in both English (download here) and Spanish (download here). The story brings you a great overview with insight from several specialists about telecommunications sector in Mexico.
