http://www.pwc.com/mx/es/knowledge-center
Overview of the
Telecommunication
Sector in Mexico:
Selected information
about the
Telecommunication
Sector in Mexico
Fixed and Mobile Lines
February 2015
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Page 1 of 17
Table of Contents
Executive Summary
3
Global Telecommunication
4
Telecommunication in Latin America
6
Telecommunication in Mexico
8
Megatrends
11
Demographic Shifts
12
Accelerating Urbanization
13
Technology Breakthroughs
14
Economic Power Shift
15
Knowledge Center Mexico
Knowledge Center
PwC Mexico
16
Page 2 of 17
Executive Summary
In 2014, global fixed telephone line subscription declined to 1,146.7 million while global fixed wired broadband
increased to over 711 million subscriptions. In the mobile market, both global mobile subscription and global
active mobile broadband subscription increased to more than 6,915 million and 806.9 million, respectively, in
the same year. Regionally, Asia-Pacific leads the total global market as it has the largest share in both fixed lines
and mobile subscription. Differences between the wireless and fixed lines across regions are constant except for
Sub-Saharan Africa, where the number of mobile subscription greatly surpasses the number of telephone lines
installed, which is the effect of easier access to wireless technology compared to other basic telecommunication
services. Overall, there is a global migration from telephone lines to mobile phones, mainly due to the market
preference over wireless communication.
Fixed telephone line subscriptions in Latin America have been gradually decreasing and reached 108 million
while fixed wired broadband subscribers increased to 54.26 million. Globally, Brazil ranks fifth in terms of
subscribers and supplies more than a third of the region’s unique subscribers, with 114 million in September
2014. In 2013, the region accounted for around 10% of the global mobile market in terms of mobile operating
revenues, with 108.7 billion USD. In the same year, the region had more than 200 mobile broadband
subscribers. Since the early 2011, mobile services have been increasing as the region’s main method of accessing
internet as it surpassed the number of fixed broadband services. With the growth in the last 3 years, there are
now more mobile broadband connections than fixed broadband in all of the leading markets in Latin America,
with Brazil leading the migration.
One of the first milestones in the telecom industry in Mexico was in 1996 when an independent regulator was
established, followed by the opening of competition of long-distance market in 1997 and local services in 1998.
One mobile operator continues to dominate over 75% of Mexico’s mobile market, even with the presence of
other operators. Like most industrializing countries, telecom infrastructure is developing first in major business
centers, particularly in Mexico City, Guadalajara and Monterrey. The number of installed telephone lines in
the country in 2013 did not change significantly from the previous year. Though there was a slight increase in
2012, improvements are predicted to be dormant as migration to wireless technology is expected. Being one of
the top users of smartphones around the world, Mexico’s mobile market is expected to expand in the next years
to come. In 2013, mobile subscriptions in the country reached over 105 million. Currently, telecommunications
in Mexico is not just about voice transmission but also includes data transmissions such as electronic mail and
social media. With a fast growing population and technology advances, Mexico’s telecommunication sector will
remain significant and is expected to grow over the next five to ten years.
This publication provides information about the fixed line and mobile market of the telecommunication
industry in the world, Latin America and Mexico. Additionally, it tackles specific trends that are currently
significant in the Mexican economy and society.
Knowledge Center
PwC Mexico
Page 3 of 17
Global Telecommunication
Global fixed telephone line subscription in 2014 reached 1,146.7 million, which was mostly from the Asia-Pacific
region (44.7%). This is followed by the Americas (22.2%) and Europe (21.1%). The African region had the least
subscription, with just 1% of the world total. All of the regions have shown small increases of fixed telephone
penetration since 2007, except the Asia- Pacific region, which is switching to other alternatives.1
Global Fixed Telephone Line Subscription, 2007-2014 (in millions)
1,253.7
1,249.4
1,253.5
1,229.0
1,201.0
1,178.4
1,157.8
21.1%
21.4%
22.2%
22.4%
46.1%
2007
1,146.7
44.7%
2008
Asia-Pacific
2009
2010
The Americas
Europe
2011
CIS
2012
Arab States
2013
Africa
2014*
Unclassified
CIS – Commonwealth of Independent States
*estimated
Source: ITU
On the other hand, global fixed wired broadband subscriptions have been increasing since 2007 and reached
over 711 million subscriptions in 2014. The Asia-Pacific region also leads the global fixed wired broadband
subscription in 2014, with over 312 million (44%). This is followed by Europe with 24.4% and the Americas
with 22.9%. Notably, the CIS region massively increased its subscription from 6.28 million in 2007 to 40.31
million in 2014.1
Global Fixed Wired Broadband Subscription, 2007-2014 (in millions)
588.0
673.3
526.3
468.1
411.0
635.3
711.1
22.9%
346.1
24.4%
28.4%
32.2%
44%
35.1%
2007
Asia-Pacific
2008
2009
Europe
2010
The Americas
2011
CIS
2012
Arab States
2013
Africa
2014*
Unclassified
CIS – Commonwealth of Independent States
*estimated
Source: ITU
1 United Nation’s International Telecommunication Union (ITU)
Knowledge Center
PwC Mexico
Page 4 of 17
It was also reported that global mobile subscription increased from 3,367.8 million in 2007 to more than 6,915
million in 2014. It is led by the Asia-Pacific region, with 3,604 million (52.1% of the total world subscriptions).
In the same year, the Americas, with 15.3% share, surpassed Europe that was 2nd in 2007. Additionally, it was
revealed in 2013 that Sub-Saharan Africa is known as the fastest growing region in this market as its unique
mobile subscribers growing by 18% annually over the last five years. It also reported that the mobile market
makes up the 6% of the region’s GDP, higher than any other region, and is expected to increase to 8% by 2020.
This is mainly due to easier access to mobile than other telecommunication services.2
Global Mobile Cellular Subscription, 2007-2014 (in millions)
4,029.9
3,367.8
5,290.1
4,639.9
6,232.0
5,863.1
6,662.0
6,915.2
15.3%
11.3%
19.3%
20.1%
41.5%
52.1%
2007
2008
Asia-Pacific
2009
Europe
2010
The Americas
2011
CIS
2012
Africa
2013
Arab States
2014*
Unclassified
CIS – Commonwealth of Independent States
*estimated
Source: ITU
Global Active Mobile Broadband
Subscription, 2007-2014
(in millions)
*estimated
Source: ITU
17.2%
24.9%
23.3%
28.5%
35.5%
Global active mobile broadband subscription also
increased from 806.9 million in 2o1o t0 2,315.3
million in 2014. Asia-Pacific had the largest
number, with 39.7% of the world total. Though it
decreased its share from 28.5% in 2010 to 24.9%
in 2014, the Americas still ranks 2nd.
39.7%
2010
Asia-Pacific
Arab States
2011
2012
The Americas
Africa
2013
2014*
Europe
Unclassified
CIS
The global split of mobile connections in the first quarter of 2013 was 77% prepaid and 23% contract and it was
expected to remain unchanged in the next few years. Post-paid mobile subscriptions are more popular in
developed areas such as North America, where in 2012, 75% of the total mobile connections were post-paid.2
Other regions have mostly prepaid users, especially Africa, where 96% of the total mobile subscribers use
prepaid services. This may be due to the different level of accessibility in the different markets as some
countries require contracts while in others, prepaid subscriptions are easier to get.
Contract/Prepaid Connections Split,
by region, 2013 (%)
4%
15%
16%
18%
20%
51%
96%
85%
84%
82%
80%
49%
SSA
CIS
MENA
Source: GSMA Intelligence
2 GSMA Intelligence
Knowledge Center
PwC Mexico
APAC
Prepaid
71%
LATAM
EU
29%
NA
Contract
Source: GSMA Mobile Economy 2013
Page 5 of 17
Telecommunication in Latin America
54.26
108.68
49.51
107.66
44.69
106.66
37.70
105.63
32.11
105.39
26.90
105.52
18.87
101.10
Latin American Fixed Line
Subscriptions, 2007-2013 (in millions)
Total Fixed telephone line subscriptions in Latin
America have been gradually decreasing and
reached 108 million while fixed wired
broadband subscribers increased to 54.26
million. 3
2007
2008
2009
2010
2011
2012
2013
Fixed Telephone Line
Fixed Wired Broadband
Source: ITU
In 2013, the number of unique subscribers in Latin America was 320 million, with a penetration of 51.6%. It is
expected to grow at a steady rate until 2020. Though penetration rate is expected to reach almost 60%, it is still
below the average of mature markets (70-80%).
Million
Latin American Unique Mobile Subscribers, 2013-2020 (million people and %)
450
400
350
300
250
200
150
100
50
0
56.2%
53.9%
57.2%
57.9%
58.6%
58%
55.2%
56%
52.4%
51.6%
60%
54%
52%
320
328
341
353
363
373
382
390
2013
2014*
2015*
2016*
2017*
2018*
2019*
2020*
50%
48%
Mobile Penetration
*forecast
Source: GSMA Intelligence
Latin American Mobile Markets by Unique
Subscribers, September 2014 (million
people and % of total)
Brazil
46; 14%
114; 35%
96; 29%
28; 9%
Mexico
Argentina
25; 8%
Colombia
17; 5%
Venezuela
Others
The mobile market of Latin America is dominated
by Brazil, supplying more than a third of the
region’s unique subscribers (114 million) by
September 2014. Globally, Brazil ranks fifth in
terms of subscribers and is expected to take
Japan’s place as fourth-largest by the end of 2015.
In the same time period, the five largest countries
in the region - Brazil, Mexico, Argentina,
Colombia and Venezuela - have a total of 230
million unique subscribers, which is more than
70% of the Latin American total.
Source: GSMA Intelligence
3 United Nation’s International Telecommunication Union (ITU)
Knowledge Center
PwC Mexico
Page 6 of 17
Since the early 2011, mobile services have been increasing as the region’s main method of accessing internet,
surpassing the number of fixed broadband services. With the growth in the last 3 years, there are now more
mobile broadband connections than fixed broadband in all of the leading markets in Latin America. One reason
that contributes to this shift is the lack of bases for fixed connections, especially in rural areas. Brazil leads the
migration as 111.3 million people were already connected through their mobiles in 2013. By 2017, 3G is
forecasted to account for around half of Latin America’s connections as network coverage is increasing
throughout the region.
Mobile vs. Fixed Broadband Connections, 2013 (in millions)
111.3
35.7
20.2
19.5
13.6
Brazil
11.7
5.7
Mexico
Argentina
11.7
2.2
Chile
Mobile
2.2
7.5
Venezuela
7.3
1.6
Peru
4.5
Colombia
Fixed
Source: GSMA Intelligence; ITU
The rate of migration from fixed broadband internet to 3G in the region has recently been accelerating, fuelled
by the fast technological shift to faster connections that is underway. 2G services accounted for 78% of all
connections in Latin America, but fell to 60% by September 2014. At the same time, 3G connections grew to
39%, which is higher than the global average of 32% and the developing market 27%. The 4G market is still
young but adoption is expected after the operators deploy their networks.4 As of September 2014, 4G
connections cover 1% of the entire region, which is in line with the developing markets’ average but very little
compared to 35% in North America, the leading market for Long-Term Evolution (LTE). However, the market
is expected to grow averagely at the rate of 85% annually in the next seven years to 2020. In the recent years,
3G connections have surged in Brazil, with half of the 3G users found in the country alone. Additionally, Brazil
also had the biggest number of 4G connections in the region, with 4.6 million as of September 2014. Colombia
led the region in terms of 4G mobile operators as around 95% of them are licensed to provide 4G mobile
internet. As of October 2014, 44 operating networks in 18 countries in the region have launched 4G networks.
On the other hand, Costa Rica, Guatemala and El Salvador are still waiting for faster internet services to be
available in their countries; Venezuela was expected to have 160 MHz operating license by the end of 2014.
Latin American Mobile Internet Operators, 2013
634
180
450
200
415
350
393
300
282
275
262
260
254
250
250
238
220
170
250
170
180
454
250
170
240
202
235
2G/3G
215
210
210
204
215
150
210
204
4G
Source: GSMA Latin America
4 GSMA Intelligence
Knowledge Center
PwC Mexico
Page 7 of 17
www.pwc.com/mx
Telecommunication in Mexico
The Telecommunication industry production had
a generally significant increase in 2012, reaching
18.3% compared to 4.3% from the previous year.
The latest recorded data stated that this industry
had a 3.16 % participation in the total GDP in the
third quarter of 2013.
3.16
2.98
2.62
2.61
2.73
2.25
1.89
1.66
2.36
Participation of Telecommunication
in the Total Mexican GDP, 2000-2013 (%)
2005 2006 2007 2008 2009 2010 2011 2012 2013*
*until September 2013
Source: SIEMT
The telecommunication sector employed over 132,567 people in 2012, a 0.27% increase from 2011 and 31%
increase from 2005.
Telecommunication Employment in Mexico, 2005-2012
140,000
100,000
0.23%
0.27%
0.24%
109,691
117,178
120,403
123,534
128,934
132,567
0.23%
101,501
60,000
0.26%
0.27%
100,892
Persons
120,000
80,000
0.26%
0.26%
2005
2006
2007
2008
2009
2010
2011
2012
40,000
20,000
0
0.28%
0.27%
0.26%
0.25%
0.24%
0.23%
0.22%
0.21%
0.20%
Growth Rate
Source SIEMT
Investment in the telecommunication industry has also been rising, and in 2012, it reached 6,799 million
USD, which is the highest figure seen since 2000. Foreign Direct Investment for the sector from 1999 to
2014 accumulated to 131.8 million USD.
3,128.2
2,584.5
3,616.2
3,545.5
3,699.2
3,273.0
3,648.2
2,890.7
5,939.9
5,107.9
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
4,933.8
5,749.3
2000
6,799.3
5,228.6
Telecommunication Services Investment, 2000-2013 (million USD)
2012 2013*
*until September 2013
Source: SIEMT
Knowledge Center
PwC Mexico
Page 8 of 17
The Mexican fixed line telecoms market has declined in the past few years. The number of installed telephone
lines in 2013 only changed 0.01% from the previous year. Though there are slight increases, improvements are
predicted to be dormant as technological developments slow down. The voice only segment was the market’s
most productive feature in 2012, with over 5.8 billion USD of revenues or 62.7% of the market’s overall value.
Overall market performance of the industry is expected to remain stagnant until 2017.5
Mexican Fixed Telephone Line Subscription, 2005-2013
(in millions and % growth)
7.96%
25
2.47%
15
2.96%
2.12%
0.69%
5%
0.39%
0.01%
-4.81%
0%
1.79%
19.861
19.998
20.491
19.506
19.919
19.997
20.588
20.590
10
19.512
Millions
20
10%
2005
2006
2007
2008
2009
2010
2011
2012
2013
5
0
-5%
-10%
% Growth
Source: ITU
Over the years, the dominating telephone operator has been holding 86.5% of the total subscribers. Reasons for
the low amount of companies in this market included the difficulty of supplying a complex, reliable and
geographically extensive network. Switching costs with this market are often high, as exiting long-term supply
contracts can be difficult.
Before 1997, the telecommunication industry was not liberalized and services had expensive prices and poor
quality, mainly because of the commercial difficulties faced by the Internet Service Providers (ISPs). Internet
providers before were forcing ISPs to wait for months to install new lines and to increase routing capacity. Most
recently, the internet market has become one of the fastest growing segments in the country’s telecom sector. In
terms of broadband penetration, Mexico has the lowest penetration rates among OECD countries. Little more
than 30% of the population regularly uses the internet while broadband penetration by mid-2012 was about
17%, well below the OECD average of 30%. Poverty is one factor that correlates to low internet penetration
along with a low number of ISPs, operating in the country. Broadband, especially DSL, is one of the fastest
growing telecom sectors in Mexico, with the subscriber growth averaging 25% per annum over the ten years
2002-2011. Aside from DSL, broadband access is can also be accessed via cable, satellite and radio.
Total fixed wired broadband subscription in 2013 increased by 7.15% to more than 13 million. Though growth
has slowed down a bit by 2011, compared to the percentage growths in 2004-2010, it is still increasing.6
Mexican Fixed Wired Broadband Subscription, 2005-2013 (in millions)
15
81.82%
Million
66.20%
10
11.101
11.868
12.717
13.627
80%
9.284
47.96%
57.10%
5
1.922
4.468
100%
60%
7.427
25.00%
19.58%
40%
3.020
6.91%
7.15%
7.15%
2011
2012
2013
0
20%
0%
2005
2006
2007
2008
2009
2010
% Growth
Source: ITU
5 United Nation’s International Telecommunication Union (ITU)
6 Marketline
Knowledge Center
PwC Mexico
Page 9 of 17
The mobile phone market consists of all analogs and digital handsets (mobile phone devices itself) used for
mobile telephony. Despite the decline in 2009, the Mexican mobile phone market has been very active in the
economy. In 2013, mobile subscriptions in the country reached over 105 million.
Mexican Mobile Cellular Subscription, 2008-2013 (in millions)
22.57%
120
25%
20.15%
Million
100
20%
13.14%
80
17.54%
60
10.48%
15%
9.84%
3.50%
6.50%
4.25%
10%
40
5%
20
47.129
55.395
66.559
75.303
83.194
91.383
94.583
100.727
105.006
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
0%
% Growth
Source: ITU
Mexico has one of the largest prepaid bases in Latin America. Prepaid cards have made mobile phone services
accessible to certain parts of the population that are not considered credit-worthy for a mobile contract or have
limited budgets or just to make few outgoing texts and calls. Some advantages prepaid has for operators are
lower acquisition costs, the elimination of bad debt problems and wider distribution as operators can sell their
prepaid packages at retails stores. In 2012, Mobile Network Operators (MNO) continued to focus on increasing
their contract subscriber base. In 2013, the number of mobile contracts increased slightly from the previous
year but prepaid services still dominate the Mexican mobile market.
Mexico Proportion of Prepaid/Postpaid Subscribers,
2008-2013
8%
13%
14%
15%
15%
17%
92%
87%
86%
85%
85%
83%
2008
2009
2010
2011
2012
2013
Prepaid
Knowledge
Center
Source: GSMA
PwC Mexico
Postpaid
Page 10 of 17
Megatrends
PwC has identified 5 megatrends (demographic shifts, shifts in global economic power accelerating
urbanization, climate change and resource scarcity, and technological breakthroughs) that will influence
industries over the next few years.
Many countries, including Mexico, are experiencing a massive demographic shift which will have its implication
for labor market. Searching for better jobs and living conditions, people would move from the countryside to
cities, which, as a result, will put natural resources under pressure of meeting the needs of these people. Much
of the expected growth will take place in the developing countries – Mexico is expected to be among the world’s
top 10 economies ranked by Purchasing Power Parity (PPP) in 2030.
Though the telecom industry is facing a number of challenges caused by those megatrends, we mainly focus on
three megatrends and correlating underlying trends.
Trend
Underlying Trends
Implication
Aging Population
Change in Consumer Behavior
Urban Migration
Smart Cities
Network Development
M2M
Digital Economy
Telecoms Reform
Demographic Shifts
Accelerating Urbanization
Technology Breakthroughs
Economic Power Shift
Knowledge Center
PwC Mexico
Page 11 of 17
Demographic Shifts
Underlying Trend:
2.30
2.25
2.20
2.15
2.10
2.05
2.00
1.95
80
79
78
77
76
75
74
73
2010E
2013E
2016F
2019F
2022F
2025F
2028F
2031F
2034F
2037F
2040F
2043F
2046F
2049F
Number of Children
There are two factors that contribute towards an
ageing population in a country, which are fertility
rate and life expectancy. Mexico has been showing a
decreasing trend in the number of children per
woman (2.28 children per woman in 2014) and an
increase in life expectancy. Life expectancy for
Mexicans is 74.5 years and in 2050, it will increase
to 79.42 years. This phenomenon causes an
accelerated population aging process.7
Fertility rate (number of children) and life
expectancy (years) in Mexico, 2010 and
forecast
Years
Mexico is moving towards an aging country though
the aging problem is not as severe as it is in the other
countries. In 2010, the number of Mexicans aged 65
or older was 7,053 thousand (6% of total population)
and it is expected that it will grow to 13,227
thousand (10% of total population) in 2025 and
31,542 thousands (20% of total population in 2050).
Fertility rate
Life expectancy
E-estimation; F-forecast
Source: CONAPO
Implication:
The aging population has considerable consequences for many industries such as healthcare, public services and
so on. Some existing surveys show that new communication technologies such as internet, mobile phones and
smartphones are underutilized by older people. Smartphones in Mexico are mostly used by people aged 18-24,
followed by the 25-34-year-old age group. On the other hand, people aged 25-34 preferably use tablets, followed
by the 18-24-year-old age group. The 35-44-year-old age group was the third biggest users for both tablets and
smartphones.8 Additionally, people in the age group of 12-17 are the biggest users of computer and internet,
with 24.3% and 24%, respectively. This is followed by the 18-28-year-old age group and 25-34-year-old age
group.9
Internet and computer usage
by age group in Mexico, 2012
4.6%
5%
7.4%
8%
55+
45-54
35-44
Smartdevice sales by age
group in Mexico
55+
12.2%
12%
25-34
1%
0%
45-54
18.4%
19%
13%
10%
27%
35-44
18-28
22%
25-34
12-17
18-24
6-11
0%
10%
Computer usage
Source: INEGI
20%
Internet uage
30%
0%
10%
Tablet users
20%
30%
40%
Smartphones users
Source: AMIPCI
However, the above mentioned studies are mostly focused on individuals who have been introduced to mobile
communication later in their lives, not those that became mobile users during their youth. Therefore, even
though the current studies demonstrate that young adults are avid users of technology, but more studies on
usage of technology by age group is required.
7 CONAPO
8 INEGI
9 AMIPCI
Knowledge Center
PwC Mexico
Page 12 of 17
Accelerating Urbanization
Underlying Trend:
The process of urbanization in Mexico began in the same
time that the industrialization process in the country, around
1940. Since 1960, Mexican urban population has been higher
than rural population. The proportion of urban population in
Mexico increased from 52% in 1962 to 78% in 2012, and
keeps on growing. It is expected that in 2050, the number of
people living in the Mexican urban area will be 123.95
million, a 40% growth compared with 88.27 million in
2010.10
Implication:
Metropolitan Area (ZM)
2010
Population
ZM de Valle de México
20,137,152
ZM de Guadalajara
4,434,252
ZM de Monterrey
4,080,329
ZM de Puebla
2,336,694
ZM de Toluca
1,846,602
Source: CONAPO
The constant growth of population living in large urban agglomerations makes important the delimitation of
metropolitan areas, municipalities and states, for a better promotion of the urban development, allowing the
conjunction between distribution and growth of territorial population towards sustainable development. Smart
cities work in bringing together technology, government and society to create smarter economies, mobility,
environment, governance and overall quality of life.
In March 2014, Guadalajara, Mexico’s 2nd largest city started collaborating with smart city builders and experts
to assist them in executing the IEEE (Institute of Electrical and Electronics Engineers) Smart Cities Initiative.
The initiative aims to select and transform a total of nine cities, including Guadalajara through the usage of
information and communication technologies (ICT) to be more intelligent and efficient in the use of resources.
10 United Nation
Knowledge Center
PwC Mexico
Page 13 of 17
Technology Breakthroughs
Underlying Trend:
With the falling prices of smartphones, 4G technology penetration is
expected to increase, as smartphones are the main devices for
mobile internet services. Smartphone penetration is expected to
reach 61.9% of the total Mexican population at the end of 2020, a big
increase from 17.9% in the 3rd quarter of 2014.
Mexican Mobile Internet
Operators, 2013
Source: GSMA Intelligence
Mobile operators have been investing in 4G LTE infrastructure not
only in Mexico, but also in the whole Latin America. The
improvement of incomes and the decrease of the cost of technology
will increase the 4G subscriptions. It was reported that in 2013, total
mobile internet operators totalled to 210, wherein 60 of them already
provided 4G mobile internet.
Implication:
4G
29%
2G/
3G
71%
Source: GSMA Intelligence
Though still at its early stages of development, Machine to Machine (M2M) technology is beginning to generate
interest from mobile operators, governments and M2M hardware and solutions companies. This growth will be
mainly in the areas of Mexico’s smart meters, digital signage, telecare, remote monitoring, mobile payments and
connected cars, M2M depends heavily on a highly developed mobile network infrastructure, preferably 4G LTE
(4G wireless communications standard), to send large quantities of data at high speeds. The consistent power
supply, as well as the presence of data centres and highly developed cloud computing systems will also have an
impact on the M2M technology.
In 2014, mobile network companies already announced M2M projects, which aims to provide clients in not only
Mexico, but as well as other Latin American countries , the power to connect, manage and control M2M
communications with local SIM cards. One of these projects expects to increase the number of connected
devices from 1.3 billion today to 20 billion in 2020. Additionally, this will also improve the society’s resources
and time efficiency by connecting machines such as energy meters, vehicles and buildings.
Knowledge Center
PwC Mexico
Page 14 of 17
Economic Power Shift
Underlying Trend:
Current economic conditions i.e. economic power shift to Asia are fostering investment in technology as
developing countries are trying to spark growth and developed countries seek new ways to cut costs and drive
innovation. 11
Implication:
On July 15th, 2013, Mexico’s president, Enrique Peña Nieto, unveiled the “Transport and Communications
Infrastructure Investment Program 2013-2018”. The final investments into the nation’s infrastructure over the
six-year period are 4 trillion MXN (315 billion USD), out of which 700 million MXN will be invested into the
communication sector. The Mexican government is committed to inject the above mentioned amount across five
regions with (see Investments in the telecoms sector by region (million MXN). With the program, the
government is aimed to:
(1) Expand the network coverage and capacity, to increase broadband services access at public and community
sites;
(2) Encourage competition, reduce cost and improve access to telecommunications services;
(3) Contribute to the Constitutional Reform of Telecommunications.
Investments in the telecoms sector by region (million MXN)
Region 2
145 million MXN
Region 3
141 million MXN
Region 1
142 million MXN
Region 5
142 million MXN
Region 4
130 million MXN
Source: SCT
11 Oxford Economics
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