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News
Issue #2001 - 15
(Apr. 2001)
(Updated
April 11, 2001)
MARKET
OUTLOOK
Mexico’s Mobile Industry to Sustain Strong Growth, says report
The Mexican wireless mobile market
ended 2000 recording an impressive increase in growth of 87 percent
with 14 million subscribers, according to a report by the Yankee
Group. Authors of the upcoming report, ‘The Wireless Mobile
Shake-out: Mexico Overview and Forecast,’ say that the spread of
pre-paid services was responsible for spurring growth over the last
two years.
- Mobile subscriber based will grow by a compound annual growth
rate of 18 percent over the next five years, toppling 35 million
in 2006.
- Operators will be focused on gaining national footprints,
through consolidation in the market over the next 12 to 18
months. Portatel and Unefon are likely to be the first
acquisition targets.
- Penetration will surge to 20 percent by the end of 2001 which
will force operators to target the middle and lower-middle
classes and open up under-served areas.
- Launch of 2.5G networks, expected early in 2002, will open the
door to untapped corporate sectors and the creation of niche
markets.
For more information: http://www.yankeegroup.com/webfolder/yg21a.nsf/webpress
Mobileinfo Comments and Advisory: We
are constantly reminded of high growth in cellular subscribers in
developing countries. We must remember that in Mexico, they do not
have high capacity wireline infrastructure. Laying cable is expensive
as compared to wireless networks. Spectrum is more easily available.
Mexico can move to 2.5G networks at the same time as U.S. and Canada.
But when you consider the totality of data applications (wireline and
wireless), they have a long way to catch up. It does offer the
infrastructure vendors an opportunity to capitalize on these emerging
markets in Mexico, South America and Asia. This way, they can
smoothen the sharp decline in telecommunications market in the
developed world.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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