Economic Outlook of Mexican Telecommunications Industry
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1 2009/TEL40/LSG/011 Agenda Item: 2 Economic Outlook of Mexican Telecommunications Industry Purpose: Information Submitted by: Mexico Liberalization Steering Group Meeting Cancun, Mexico September 2009
2 Economic outlook of Mexican Telecommunications Industry Rodrigo de la Parra Director General of Regulatory Prospective COFETEL September, 2009 MARKET OVERVIEW
3 Fixed and Mobile lines per 100 inhabitants Allowance for foreing investment in mobile sector Begining of Calling Party Pays In mobile sector Telmex interconnects new players Begining of National Calling party pays Auction of spectrum band 1.9 Ghz for mobile services Entrance to the market of new fixed and mobile operators Auction of spectrum band 1.9 Ghz for mobile services Internet Access in MéxicoM Most of mexican users have migrated to broadband connections, DSL is the main technology with 68 percent of total access followed by coaxial cable with 20 percent.
4 TV Cable operators have become a important player for promoting competition in fixed telephony and broadband interet access Household in Mexico with telecommunications services The National Institute of Statistics in Mexico (INEGI) on a yearly basis makes the National Survey on Use of ICT s on households: Mobile phone has become the most frequently available service.
5 Fixed and mobile phone in Mexican households Mobile phone has become the preferred access to telephone network for many mexican families who can not afford both services. A look to Triple and Quadruple Play ENDUTIH also allows to take a look in the evolution or Triple Play in Mexico: We can observe a important increase in availability of triple and quadruple play services in mexican households.
6 RECENT REGULATORY DEVELOPMENTS Number portability Number Portability was effectively implemented on July 5th, 2008, being Mexico the first country in Latin America to introduce this regulatory policy. -Number portability has been done with All Call Query technical solution. - It applies from fixed to fixed service, mobile to mobile and from nongeographic numbers to non-geographic numbers within the same local service area. - Cofetel determined that each carrier was responsible for recover its own costs of network upgrade with no possibilities of charge user or other carriers. - Data Base Administrator is paid on a per transaction basis.
7 Number portability There are 901, 385 ported numbers at august 31, 2009 with the mointly average increasing constantly. Number portability Number portability has become a key factor in Triple Play services development PORTED NUMBERS FOR TV PAY OPERATORS August 31, 2009 TV Cable operators have been net winners of users which facilitates introduction of voice offers to their traditional offers.
8 Interconnection rates Cofetel continues to solve disputes between carriers regarding interconnection charges for the termination of calls in fixed and mobile networks. The Commission has determined reductions in interconnection rates, establishing competitive levels that can be compared to those countries that apply costing methodologies. The reductions have allowed a decrease in final rates to users, creating a broader offer of services. Undertaken work by Cofetel in interconnection matters result adequate to international best practices, and they are also in line with Mexico international commitments before the World Trade Organization. Interconnection Master Plan The Federal Telecommunications Commission, published in the Official Gazzette (Diario Oficial de la Federación) on February 10th, 2009 the Interconnection and Interoperability Fundamental Technical Plan. The objective of this plan is to ensure the interconnection and interoperability of telecommunications networks and services; create appropriate conditions to attract investment to the sector in order to stimulate the growth and effective development and roll out of telecommunications infrastructure, technological innovation and fair competition based on rules that consider legal, technical, economic and commercial criteria to interconnection. It is important to highlight that this Plan also sets the stage for the interconnection of next generation networks by establishing the principle of unrestrictive access for access networks and content.
9 Spectrum auctions Cofetel has prepared a set of bidding processes of the radio spectrum for the provision of 3G mobile services, WiMAX and other wireless services: Bands Services / Mhz Mobile Telephony and third generation services / Mhz Mobile Telephony and third generation services Mhz Wireless access technologies WiMax / Ghz Ultra band short links Dark fiber auctions The Mexican government has planned to bid 24,000 kilometers of dark fiber that are now on the remit of the Electricity Public Company, so that it can be exploited by public telecommunications networks. It will allow to telecom operators to have different options for deployment of long distance networks, as well as metropolitan networks by making they their own investment and solve leased lines issues regarding to high charges applied for incumbent operator.
10 Gracias
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