Mexican Communications Market Sets the Standard in Latin America .

The Mexican communications market is the most influential market in Latin America. The latest report from Pyramid Research, “Communications Markets in Mexico,” forecasts a 6% annual growth for fixed, mobile, pay TV and Internet service revenues in Mexico with the trend continuing through 2009.

Report author Gabriela Baez comments, “Mexico stands apart from other Latin American countries due to the sheer size of service revenues and its expected growth over the next five years. Mexico, for instance, will account for the overwhelming majority of fixed line net additions in the region.”

The Mexican market’s greatest influence on the Latin America communications market lies in its fixed and mobile incumbent Telmex and Telcel. Both operators, with their pan-regional subsidiaries, serve as a litmus test for new offerings throughout Latin America. Mexico is also a key market for panregional powerhouse TEM as it is one of the few countries in which the Spanish provider plays a contender rather than an incumbent role making its growth potential particularly interesting.

The rising importance of Telmex and Telcel parent America Movil on the global stage has also created an added impetus for equipment vendors to establish a strong presence in Mexico in order to penetrate these two accounts. Baez adds “Mexico’s equipment market is a significant opportunity for vendors with over US $3.5bn in 2004 sales. Fixed and mobile operators are
expected to invest a similar amount in the next two years.”