Telecoms sector shows continued growth

26 May 2005

Mexico’s telecoms regulator Cofetel has revealed that the country’s telecoms sector grew 20.6% in the first three months of the year, with cheaper tariffs in the mobile and long-distance sector and competition in the data market fuelling the rise. Cofetel, which bases its figures on industry output, says mobile services were up 35.2% on the same period last year. There were 40.8 million cellular subscribers in Mexico by the end of March. The number of fixed line connections was up almost 10% year-on-year to 18.5 million, while there was growth in both international and domestic long-distance traffic.

Separately, local newspaper reports say that Cofetel is voicing concerns that the Mexican mobile market will soon be dominated by just two companies. According to reports from El Universal, Cofetel is estimating that by 2010 América Móvil subsidiary Telcel will have increased its market share from the current level of 64% to around 74%, while the number two player, Telefónica Móviles, will see its own share rise from 15.6% to over 22%.