The mobile broadband services, which have grown explosively in the past three years, will dominate the connectivity needs of Mexican consumers in the medium term, driven by a wider range of operators and a reduction in prices above 14 percent.
According to the Index of Production Telecommunications Sector, between 2011 and 2013 the mobile broadband subscribers in Mexico showing an increasement. Nevertheless its potential is still very high. One of the projects that will detonate in the short term, according to experts, is the implementation of the wholesale network in the 700MHz band, which will bring services to rural areas and towns with less than 5000 inhabitants. In addition, it will generate a decrease in costs paid by operators to offer services to consumers, according to the study “regulatory options for optimal use of the 700MHz band in Mexico.”
This combination of lower costs and increased competition will cause a drop in retail prices between 12 and 16 percent in the short term.
“What happened in Mexico and Latin America the past 10 years has been a revolution in democratic access of citizens for different socioeconomic levels, such a fundamental service such as telephony and mobile internet,” said Pablo Bello, Secretary General of the Ibero-American Association of Telecommunications Companies (AHCIET).
He added that Mexico should reach 90 million broadband connections during this decade to achieve the level of penetration of developed countries. Considered that the goal is feasible as long as emphasis is placed on investments.
Mobile broadband networks are enabling more people to connect to high-speed networks and benefit from a growing number of applications and services, says Brahima Sanou, an official of the International Telecommunication Union (ITU) report.
While increasing the speed of mobile broadband services prices continue downward and Technologies of Information and Communication will become more affordable.
Within four years, prices for mobile broadband have been reduced by 82 percent globally, according to the ITU official.
In addition, AHCIET found that the 700 MHz band will accelerate closing the digital divide in Mexico.
Meanwhile, unlike the prices of mobile broadband, fixed internet services remain high for users, according to experts.
“There is a replacement for fixed broadband, since nowadays, users require having a connection at all times and that is what we are seeing,” said Andrea Valencia, an analyst at IDC Mexico.
He explained that in 2014 the mobile broadband services will grow at a rate of 35 percent, as opposed to mobile lines is expected to advance 7.7 percent at the end of this year, according to projections by IDC Mexico.
Photo Credit: Sigfrid Lundberg