Competition in the Telecommunications Sector in Mexico.ppt

Competition in the Telecommunications Sector in Mexico April 2008 Coverage of Telecommunications services have still not reached its full potential. This Administration is promoting measures to increase penetration of telecommunications services. Over the last year, there has been a dramatic fall in prices of close to 30% in mobile telephony, due mainly to an increase in competitive pressures. In other services more competition and faster reduction in rates are needed, particularly in Internet access. Household Expenditure in Telecommunications Services as percentage of Total Expenditure, by Population Deciles In order to reduce the income gap it is necessary that Telecommunications Services reach the entire population. Competition in the telecommunications sector has intensified, particularly in the mobile market. Spectrum Auction Program Auction Programs since 1996 Competition of backbone services has been enhanced by the entrance of Electric companies in the Market. CFE entrance into the telecommunications market will lower prices, particularly for internet access services. CFE entrance into the provision of Internet access will help to lower the price disparity between rural and urban areas. Local Call Revenue of the incumbent when its costumers make Long Distance Calls and Calls to Mobiles(Millions of Pesos per year, 2005 prices ) * Canada Mexico Brazil Chile US Korea France Germany Switzerland Spain UK Mobile Telephony, 2006(Subscribers / 100 inhabitants) 52.5 52.6 52.9 75.6 77.4 83.8 85.1 101.9 102.1 106.4 116.4 3.1 3.4 5.9 15.4 18.1 19.3 20.9 21.7 23.6 26.5 29.3 Brazil Mexico Chile Spain Germany US France UK Canada Switzerland Korea Broadband, 2006(Subscribers / 100 inhabitants) 18.3 Mexico 20.2 Chile 20.5 Brazil 42.4 Spain 56.0 Korea 55.8 France 57.2 US 57.6 UK 64.1 Canada 65.5 Germany 69.4 Switzerland Fixed Telephony, 2006(Lines / 100 inhabitants) Fuente: Unión Internacional de Telecomunicaciones Source: OECD, Communications Outlook 2007. OECD