http://www.pwc.

com/mx/es/knowledge-center

Overview of the
Telecommunication
Sector in Mexico:
Selected information
about the
Telecommunication
Sector in Mexico

Fixed and Mobile Lines

February 2015

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Page 1 of 17

Table of Contents
Executive Summary

Global Telecommunication

Telecommunication in Latin America

Telecommunication in Mexico

Megatrends

11

Demographic Shifts

12

Accelerating Urbanization

13

Technology Breakthroughs

14

Economic Power Shift

15

Knowledge Center Mexico

Knowledge Center
PwC Mexico

16

Page 2 of 17

Executive Summary
In 2014, global fixed telephone line subscription declined to 1,146.7 million while global fixed wired broadband
increased to over 711 million subscriptions. In the mobile market, both global mobile subscription and global
active mobile broadband subscription increased to more than 6,915 million and 806.9 million, respectively, in
the same year. Regionally, Asia-Pacific leads the total global market as it has the largest share in both fixed lines
and mobile subscription. Differences between the wireless and fixed lines across regions are constant except for
Sub-Saharan Africa, where the number of mobile subscription greatly surpasses the number of telephone lines
installed, which is the effect of easier access to wireless technology compared to other basic telecommunication
services. Overall, there is a global migration from telephone lines to mobile phones, mainly due to the market
preference over wireless communication.
Fixed telephone line subscriptions in Latin America have been gradually decreasing and reached 108 million
while fixed wired broadband subscribers increased to 54.26 million. Globally, Brazil ranks fifth in terms of
subscribers and supplies more than a third of the regions unique subscribers, with 114 million in September
2014. In 2013, the region accounted for around 10% of the global mobile market in terms of mobile operating
revenues, with 108.7 billion USD. In the same year, the region had more than 200 mobile broadband
subscribers. Since the early 2011, mobile services have been increasing as the regions main method of accessing
internet as it surpassed the number of fixed broadband services. With the growth in the last 3 years, there are
now more mobile broadband connections than fixed broadband in all of the leading markets in Latin America,
with Brazil leading the migration.
One of the first milestones in the telecom industry in Mexico was in 1996 when an independent regulator was
established, followed by the opening of competition of long-distance market in 1997 and local services in 1998.
One mobile operator continues to dominate over 75% of Mexicos mobile market, even with the presence of
other operators. Like most industrializing countries, telecom infrastructure is developing first in major business
centers, particularly in Mexico City, Guadalajara and Monterrey. The number of installed telephone lines in
the country in 2013 did not change significantly from the previous year. Though there was a slight increase in
2012, improvements are predicted to be dormant as migration to wireless technology is expected. Being one of
the top users of smartphones around the world, Mexicos mobile market is expected to expand in the next years
to come. In 2013, mobile subscriptions in the country reached over 105 million. Currently, telecommunications
in Mexico is not just about voice transmission but also includes data transmissions such as electronic mail and
social media. With a fast growing population and technology advances, Mexicos telecommunication sector will
remain significant and is expected to grow over the next five to ten years.
This publication provides information about the fixed line and mobile market of the telecommunication
industry in the world, Latin America and Mexico. Additionally, it tackles specific trends that are currently
significant in the Mexican economy and society.

Knowledge Center
PwC Mexico

Page 3 of 17

Global Telecommunication
Global fixed telephone line subscription in 2014 reached 1,146.7 million, which was mostly from the Asia-Pacific
region (44.7%). This is followed by the Americas (22.2%) and Europe (21.1%). The African region had the least
subscription, with just 1% of the world total. All of the regions have shown small increases of fixed telephone
penetration since 2007, except the Asia- Pacific region, which is switching to other alternatives.1
Global Fixed Telephone Line Subscription, 2007-2014 (in millions)
1,253.7

1,249.4

1,253.5

1,229.0

1,201.0

1,178.4

1,157.8

21.1%

21.4%

22.2%

22.4%

46.1%

2007

1,146.7

44.7%
2008

Asia-Pacific

2009

2010

The Americas

Europe

2011
CIS

2012
Arab States

2013
Africa

2014*
Unclassified

CIS Commonwealth of Independent States

*estimated
Source: ITU

On the other hand, global fixed wired broadband subscriptions have been increasing since 2007 and reached
over 711 million subscriptions in 2014. The Asia-Pacific region also leads the global fixed wired broadband
subscription in 2014, with over 312 million (44%). This is followed by Europe with 24.4% and the Americas
with 22.9%. Notably, the CIS region massively increased its subscription from 6.28 million in 2007 to 40.31
million in 2014.1

Global Fixed Wired Broadband Subscription, 2007-2014 (in millions)

588.0

673.3

526.3

468.1

411.0

635.3

711.1

22.9%

346.1

24.4%

28.4%
32.2%

44%

35.1%
2007
Asia-Pacific

2008

2009
Europe

2010
The Americas

2011
CIS

2012
Arab States

2013
Africa

2014*
Unclassified

CIS Commonwealth of Independent States

*estimated
Source: ITU

1 United Nations International Telecommunication Union (ITU)

Knowledge Center
PwC Mexico

Page 4 of 17

It was also reported that global mobile subscription increased from 3,367.8 million in 2007 to more than 6,915
million in 2014. It is led by the Asia-Pacific region, with 3,604 million (52.1% of the total world subscriptions).
In the same year, the Americas, with 15.3% share, surpassed Europe that was 2nd in 2007. Additionally, it was
revealed in 2013 that Sub-Saharan Africa is known as the fastest growing region in this market as its unique
mobile subscribers growing by 18% annually over the last five years. It also reported that the mobile market
makes up the 6% of the regions GDP, higher than any other region, and is expected to increase to 8% by 2020.
This is mainly due to easier access to mobile than other telecommunication services.2
Global Mobile Cellular Subscription, 2007-2014 (in millions)

4,029.9

3,367.8

5,290.1

4,639.9

6,232.0

5,863.1

6,662.0

6,915.2

15.3%
11.3%

19.3%
20.1%
41.5%

52.1%

2007

2008

Asia-Pacific

2009
Europe

2010
The Americas

2011
CIS

2012
Africa

2013
Arab States

2014*
Unclassified

CIS Commonwealth of Independent States

*estimated
Source: ITU

Global Active Mobile Broadband

Subscription, 2007-2014
(in millions)

*estimated
Source: ITU

17.2%
24.9%
23.3%
28.5%
35.5%

Global active mobile broadband subscription also

increased from 806.9 million in 2o1o t0 2,315.3
million in 2014. Asia-Pacific had the largest
number, with 39.7% of the world total. Though it
decreased its share from 28.5% in 2010 to 24.9%
in 2014, the Americas still ranks 2nd.

39.7%
2010

Asia-Pacific
Arab States

2011

2012

The Americas
Africa

2013

2014*

Europe
Unclassified

CIS

The global split of mobile connections in the first quarter of 2013 was 77% prepaid and 23% contract and it was
expected to remain unchanged in the next few years. Post-paid mobile subscriptions are more popular in
developed areas such as North America, where in 2012, 75% of the total mobile connections were post-paid.2
Other regions have mostly prepaid users, especially Africa, where 96% of the total mobile subscribers use
prepaid services. This may be due to the different level of accessibility in the different markets as some
countries require contracts while in others, prepaid subscriptions are easier to get.
Contract/Prepaid Connections Split,
by region, 2013 (%)
4%

15%

16%

18%

20%
51%

96%

85%

84%

82%

80%
49%

SSA

CIS

MENA

Source: GSMA Intelligence

2 GSMA Intelligence

Knowledge Center
PwC Mexico

APAC

Prepaid

71%

LATAM

EU

29%
NA

Contract
Source: GSMA Mobile Economy 2013

Page 5 of 17

Telecommunication in Latin America

54.26

108.68

49.51

107.66

44.69

106.66

37.70

105.63

32.11

105.39

26.90

105.52

18.87

101.10

Latin American Fixed Line

Subscriptions, 2007-2013 (in millions)

Total Fixed telephone line subscriptions in Latin

America have been gradually decreasing and
reached 108 million while fixed wired
broadband subscribers increased to 54.26
million. 3

2007
2008
2009
2010
2011
2012
2013
Fixed Telephone Line
Fixed Wired Broadband
Source: ITU

In 2013, the number of unique subscribers in Latin America was 320 million, with a penetration of 51.6%. It is
expected to grow at a steady rate until 2020. Though penetration rate is expected to reach almost 60%, it is still
below the average of mature markets (70-80%).

Million

Latin American Unique Mobile Subscribers, 2013-2020 (million people and %)

450
400
350
300
250
200
150
100
50
0

56.2%
53.9%

57.2%

57.9%

58.6%

58%

55.2%

56%

52.4%

51.6%

60%

54%
52%

320

328

341

353

363

373

382

390

2013

2014*

2015*

2016*

2017*

2018*

2019*

2020*

50%
48%

Mobile Penetration

*forecast
Source: GSMA Intelligence

Latin American Mobile Markets by Unique

Subscribers, September 2014 (million
people and % of total)
Brazil
46; 14%
114; 35%

96; 29%

28; 9%

Mexico
Argentina

25; 8%

Colombia

17; 5%

Venezuela
Others

The mobile market of Latin America is dominated

by Brazil, supplying more than a third of the
regions unique subscribers (114 million) by
September 2014. Globally, Brazil ranks fifth in
terms of subscribers and is expected to take
Japans place as fourth-largest by the end of 2015.
In the same time period, the five largest countries
in the region - Brazil, Mexico, Argentina,
Colombia and Venezuela - have a total of 230
million unique subscribers, which is more than
70% of the Latin American total.

Source: GSMA Intelligence

3 United Nations International Telecommunication Union (ITU)

Knowledge Center
PwC Mexico

Page 6 of 17

Since the early 2011, mobile services have been increasing as the regions main method of accessing internet,
surpassing the number of fixed broadband services. With the growth in the last 3 years, there are now more
mobile broadband connections than fixed broadband in all of the leading markets in Latin America. One reason
that contributes to this shift is the lack of bases for fixed connections, especially in rural areas. Brazil leads the
migration as 111.3 million people were already connected through their mobiles in 2013. By 2017, 3G is
forecasted to account for around half of Latin Americas connections as network coverage is increasing
throughout the region.
Mobile vs. Fixed Broadband Connections, 2013 (in millions)
111.3

35.7
20.2

19.5

13.6

Brazil

11.7

5.7

Mexico

Argentina

11.7

2.2

Chile
Mobile

2.2

7.5

Venezuela

7.3

1.6

Peru

4.5

Colombia

Fixed

Source: GSMA Intelligence; ITU

The rate of migration from fixed broadband internet to 3G in the region has recently been accelerating, fuelled
by the fast technological shift to faster connections that is underway. 2G services accounted for 78% of all
connections in Latin America, but fell to 60% by September 2014. At the same time, 3G connections grew to
39%, which is higher than the global average of 32% and the developing market 27%. The 4G market is still
young but adoption is expected after the operators deploy their networks.4 As of September 2014, 4G
connections cover 1% of the entire region, which is in line with the developing markets average but very little
compared to 35% in North America, the leading market for Long-Term Evolution (LTE). However, the market
is expected to grow averagely at the rate of 85% annually in the next seven years to 2020. In the recent years,
3G connections have surged in Brazil, with half of the 3G users found in the country alone. Additionally, Brazil
also had the biggest number of 4G connections in the region, with 4.6 million as of September 2014. Colombia
led the region in terms of 4G mobile operators as around 95% of them are licensed to provide 4G mobile
internet. As of October 2014, 44 operating networks in 18 countries in the region have launched 4G networks.
On the other hand, Costa Rica, Guatemala and El Salvador are still waiting for faster internet services to be
available in their countries; Venezuela was expected to have 160 MHz operating license by the end of 2014.

Latin American Mobile Internet Operators, 2013

634
180

450
200

415
350
393

300

282

275

262

260

254

250

250

238

220

170

250

170

180

454

250

170

240

202

235

2G/3G

215

210

210

204

215

150

210

204

4G

Source: GSMA Latin America

4 GSMA Intelligence

Knowledge Center
PwC Mexico

Page 7 of 17

www.pwc.com/mx

Telecommunication in Mexico
The Telecommunication industry production had
a generally significant increase in 2012, reaching
18.3% compared to 4.3% from the previous year.
The latest recorded data stated that this industry
had a 3.16 % participation in the total GDP in the
third quarter of 2013.

3.16

2.98

2.62

2.61

2.73

2.25

1.89

1.66

2.36

Participation of Telecommunication
in the Total Mexican GDP, 2000-2013 (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013*

*until September 2013
Source: SIEMT

The telecommunication sector employed over 132,567 people in 2012, a 0.27% increase from 2011 and 31%
increase from 2005.

Telecommunication Employment in Mexico, 2005-2012

140,000
100,000
0.23%

0.27%

0.24%
109,691

117,178

120,403

123,534

128,934

132,567

0.23%
101,501

60,000

0.26%

0.27%

100,892

Persons

120,000
80,000

0.26%

0.26%

2005

2006

2007

2008

2009

2010

2011

2012

40,000
20,000
0

0.28%
0.27%
0.26%
0.25%
0.24%
0.23%
0.22%
0.21%
0.20%

Growth Rate

Source SIEMT

Investment in the telecommunication industry has also been rising, and in 2012, it reached 6,799 million
USD, which is the highest figure seen since 2000. Foreign Direct Investment for the sector from 1999 to
2014 accumulated to 131.8 million USD.

3,128.2

2,584.5

3,616.2

3,545.5

3,699.2

3,273.0

3,648.2

2,890.7

5,939.9

5,107.9

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

4,933.8

5,749.3

2000

6,799.3

5,228.6

Telecommunication Services Investment, 2000-2013 (million USD)

2012 2013*

*until September 2013

Source: SIEMT

Knowledge Center
PwC Mexico

Page 8 of 17

The Mexican fixed line telecoms market has declined in the past few years. The number of installed telephone
lines in 2013 only changed 0.01% from the previous year. Though there are slight increases, improvements are
predicted to be dormant as technological developments slow down. The voice only segment was the markets
most productive feature in 2012, with over 5.8 billion USD of revenues or 62.7% of the markets overall value.
Overall market performance of the industry is expected to remain stagnant until 2017.5
Mexican Fixed Telephone Line Subscription, 2005-2013
(in millions and % growth)
7.96%
25
2.47%

15

2.96%

2.12%

0.69%

5%

0.39%

0.01%

-4.81%

0%

1.79%

19.861

19.998

20.491

19.506

19.919

19.997

20.588

20.590

10
19.512

Millions

20

10%

2005

2006

2007

2008

2009

2010

2011

2012

2013

5
0

-5%
-10%

% Growth

Source: ITU

Over the years, the dominating telephone operator has been holding 86.5% of the total subscribers. Reasons for
the low amount of companies in this market included the difficulty of supplying a complex, reliable and
geographically extensive network. Switching costs with this market are often high, as exiting long-term supply
contracts can be difficult.
Before 1997, the telecommunication industry was not liberalized and services had expensive prices and poor
quality, mainly because of the commercial difficulties faced by the Internet Service Providers (ISPs). Internet
providers before were forcing ISPs to wait for months to install new lines and to increase routing capacity. Most
recently, the internet market has become one of the fastest growing segments in the countrys telecom sector. In
terms of broadband penetration, Mexico has the lowest penetration rates among OECD countries. Little more
than 30% of the population regularly uses the internet while broadband penetration by mid-2012 was about
17%, well below the OECD average of 30%. Poverty is one factor that correlates to low internet penetration
along with a low number of ISPs, operating in the country. Broadband, especially DSL, is one of the fastest
growing telecom sectors in Mexico, with the subscriber growth averaging 25% per annum over the ten years
2002-2011. Aside from DSL, broadband access is can also be accessed via cable, satellite and radio.
Total fixed wired broadband subscription in 2013 increased by 7.15% to more than 13 million. Though growth
has slowed down a bit by 2011, compared to the percentage growths in 2004-2010, it is still increasing.6

Mexican Fixed Wired Broadband Subscription, 2005-2013 (in millions)

15

81.82%

Million

66.20%
10

11.101

11.868

12.717

13.627

80%

9.284

47.96%
57.10%

5
1.922

4.468

100%

60%
7.427

25.00%

19.58%

40%

3.020
6.91%

7.15%

7.15%

2011

2012

2013

20%
0%

2005

2006

2007

2008

2009

2010

% Growth
Source: ITU
5 United Nations International Telecommunication Union (ITU)
6 Marketline

Knowledge Center
PwC Mexico

Page 9 of 17

The mobile phone market consists of all analogs and digital handsets (mobile phone devices itself) used for
mobile telephony. Despite the decline in 2009, the Mexican mobile phone market has been very active in the
economy. In 2013, mobile subscriptions in the country reached over 105 million.

Mexican Mobile Cellular Subscription, 2008-2013 (in millions)

22.57%

120

25%
20.15%

Million

100

20%
13.14%

80
17.54%

60

10.48%

15%
9.84%
3.50%

6.50%

4.25%
10%

40

5%

20
47.129

55.395

66.559

75.303

83.194

91.383

94.583

100.727

105.006

2005

2006

2007

2008

2009

2010

2011

2012

2013

0%
% Growth

Source: ITU

Mexico has one of the largest prepaid bases in Latin America. Prepaid cards have made mobile phone services
accessible to certain parts of the population that are not considered credit-worthy for a mobile contract or have
limited budgets or just to make few outgoing texts and calls. Some advantages prepaid has for operators are
lower acquisition costs, the elimination of bad debt problems and wider distribution as operators can sell their
prepaid packages at retails stores. In 2012, Mobile Network Operators (MNO) continued to focus on increasing
their contract subscriber base. In 2013, the number of mobile contracts increased slightly from the previous
year but prepaid services still dominate the Mexican mobile market.

Mexico Proportion of Prepaid/Postpaid Subscribers,

2008-2013

8%

13%

14%

15%

15%

17%

92%

87%

86%

85%

85%

83%

2008

2009

2010

2011

2012

2013

Prepaid

Knowledge
Center
Source: GSMA
PwC Mexico

Postpaid

Page 10 of 17

Megatrends
PwC has identified 5 megatrends (demographic shifts, shifts in global economic power accelerating
urbanization, climate change and resource scarcity, and technological breakthroughs) that will influence
industries over the next few years.
Many countries, including Mexico, are experiencing a massive demographic shift which will have its implication
for labor market. Searching for better jobs and living conditions, people would move from the countryside to
cities, which, as a result, will put natural resources under pressure of meeting the needs of these people. Much
of the expected growth will take place in the developing countries Mexico is expected to be among the worlds
top 10 economies ranked by Purchasing Power Parity (PPP) in 2030.
Though the telecom industry is facing a number of challenges caused by those megatrends, we mainly focus on
three megatrends and correlating underlying trends.
Trend

Underlying Trends

Implication

Aging Population

Change in Consumer Behavior

Urban Migration

Smart Cities

Network Development

M2M

Digital Economy

Telecoms Reform

Demographic Shifts

Accelerating Urbanization

Technology Breakthroughs

Economic Power Shift

Knowledge Center
PwC Mexico

Page 11 of 17

Demographic Shifts
Underlying Trend:

2.30
2.25
2.20
2.15
2.10
2.05
2.00
1.95

80
79
78
77
76
75
74
73
2010E
2013E
2016F
2019F
2022F
2025F
2028F
2031F
2034F
2037F
2040F
2043F
2046F
2049F

Number of Children

There are two factors that contribute towards an

ageing population in a country, which are fertility
rate and life expectancy. Mexico has been showing a
decreasing trend in the number of children per
woman (2.28 children per woman in 2014) and an
increase in life expectancy. Life expectancy for
Mexicans is 74.5 years and in 2050, it will increase
to 79.42 years. This phenomenon causes an
accelerated population aging process.7

Fertility rate (number of children) and life

expectancy (years) in Mexico, 2010 and
forecast

Years

Mexico is moving towards an aging country though

the aging problem is not as severe as it is in the other
countries. In 2010, the number of Mexicans aged 65
or older was 7,053 thousand (6% of total population)
and it is expected that it will grow to 13,227
thousand (10% of total population) in 2025 and
31,542 thousands (20% of total population in 2050).

Fertility rate

Life expectancy

E-estimation; F-forecast
Source: CONAPO

Implication:
The aging population has considerable consequences for many industries such as healthcare, public services and
so on. Some existing surveys show that new communication technologies such as internet, mobile phones and
smartphones are underutilized by older people. Smartphones in Mexico are mostly used by people aged 18-24,
followed by the 25-34-year-old age group. On the other hand, people aged 25-34 preferably use tablets, followed
by the 18-24-year-old age group. The 35-44-year-old age group was the third biggest users for both tablets and
smartphones.8 Additionally, people in the age group of 12-17 are the biggest users of computer and internet,
with 24.3% and 24%, respectively. This is followed by the 18-28-year-old age group and 25-34-year-old age
group.9

Internet and computer usage

by age group in Mexico, 2012
4.6%
5%
7.4%
8%

55+
45-54
35-44

Smartdevice sales by age

group in Mexico
55+

12.2%
12%

25-34

1%
0%

45-54
18.4%
19%

13%
10%

27%

35-44

18-28

22%

25-34

12-17

18-24

6-11
0%

10%
Computer usage

Source: INEGI

20%
Internet uage

30%

0%

10%
Tablet users

20%

30%

40%

Smartphones users

Source: AMIPCI

However, the above mentioned studies are mostly focused on individuals who have been introduced to mobile
communication later in their lives, not those that became mobile users during their youth. Therefore, even
though the current studies demonstrate that young adults are avid users of technology, but more studies on
usage of technology by age group is required.
7 CONAPO
8 INEGI
9 AMIPCI

Knowledge Center
PwC Mexico

Page 12 of 17

Accelerating Urbanization
Underlying Trend:
The process of urbanization in Mexico began in the same
time that the industrialization process in the country, around
1940. Since 1960, Mexican urban population has been higher
than rural population. The proportion of urban population in
Mexico increased from 52% in 1962 to 78% in 2012, and
keeps on growing. It is expected that in 2050, the number of
people living in the Mexican urban area will be 123.95
million, a 40% growth compared with 88.27 million in
2010.10
Implication:

Metropolitan Area (ZM)

2010
Population

ZM de Valle de Mxico

20,137,152

ZM de Guadalajara

4,434,252

ZM de Monterrey

4,080,329

ZM de Puebla

2,336,694

ZM de Toluca

1,846,602

Source: CONAPO

The constant growth of population living in large urban agglomerations makes important the delimitation of
metropolitan areas, municipalities and states, for a better promotion of the urban development, allowing the
conjunction between distribution and growth of territorial population towards sustainable development. Smart
cities work in bringing together technology, government and society to create smarter economies, mobility,
environment, governance and overall quality of life.
In March 2014, Guadalajara, Mexicos 2nd largest city started collaborating with smart city builders and experts
to assist them in executing the IEEE (Institute of Electrical and Electronics Engineers) Smart Cities Initiative.
The initiative aims to select and transform a total of nine cities, including Guadalajara through the usage of
information and communication technologies (ICT) to be more intelligent and efficient in the use of resources.

10 United Nation

Knowledge Center
PwC Mexico

Page 13 of 17

Technology Breakthroughs
Underlying Trend:

With the falling prices of smartphones, 4G technology penetration is

expected to increase, as smartphones are the main devices for
mobile internet services. Smartphone penetration is expected to
reach 61.9% of the total Mexican population at the end of 2020, a big
increase from 17.9% in the 3rd quarter of 2014.

Mexican Mobile Internet

Operators, 2013
Source: GSMA Intelligence

Mobile operators have been investing in 4G LTE infrastructure not

only in Mexico, but also in the whole Latin America. The
improvement of incomes and the decrease of the cost of technology
will increase the 4G subscriptions. It was reported that in 2013, total
mobile internet operators totalled to 210, wherein 60 of them already
provided 4G mobile internet.
Implication:

4G
29%

2G/
3G
71%

Source: GSMA Intelligence

Though still at its early stages of development, Machine to Machine (M2M) technology is beginning to generate
interest from mobile operators, governments and M2M hardware and solutions companies. This growth will be
mainly in the areas of Mexicos smart meters, digital signage, telecare, remote monitoring, mobile payments and
connected cars, M2M depends heavily on a highly developed mobile network infrastructure, preferably 4G LTE
(4G wireless communications standard), to send large quantities of data at high speeds. The consistent power
supply, as well as the presence of data centres and highly developed cloud computing systems will also have an
impact on the M2M technology.
In 2014, mobile network companies already announced M2M projects, which aims to provide clients in not only
Mexico, but as well as other Latin American countries , the power to connect, manage and control M2M
communications with local SIM cards. One of these projects expects to increase the number of connected
devices from 1.3 billion today to 20 billion in 2020. Additionally, this will also improve the societys resources
and time efficiency by connecting machines such as energy meters, vehicles and buildings.

Knowledge Center
PwC Mexico

Page 14 of 17

Economic Power Shift

Underlying Trend:
Current economic conditions i.e. economic power shift to Asia are fostering investment in technology as
developing countries are trying to spark growth and developed countries seek new ways to cut costs and drive
innovation. 11
Implication:
On July 15th, 2013, Mexicos president, Enrique Pea Nieto, unveiled the Transport and Communications
Infrastructure Investment Program 2013-2018. The final investments into the nations infrastructure over the
six-year period are 4 trillion MXN (315 billion USD), out of which 700 million MXN will be invested into the
communication sector. The Mexican government is committed to inject the above mentioned amount across five
regions with (see Investments in the telecoms sector by region (million MXN). With the program, the
government is aimed to:
(1) Expand the network coverage and capacity, to increase broadband services access at public and community
sites;
(2) Encourage competition, reduce cost and improve access to telecommunications services;
(3) Contribute to the Constitutional Reform of Telecommunications.

Investments in the telecoms sector by region (million MXN)

Region 2
145 million MXN

Region 3
141 million MXN

Region 1
142 million MXN
Region 5
142 million MXN
Region 4
130 million MXN
Source: SCT

11 Oxford Economics

Knowledge Center
PwC Mexico

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Knowledge Center Mexico

Knowledge Center Mexico acts as a knowledge, innovation and best practices provider to PwC practitioners.
This enables the practitioners to successfully identify new service offerings, approach the market and complete
projects.
The expert staff of Knowledge Center designs innovative solutions for PwC partners and managers. The
Knowledge Center delivers knowledge and experience through:

Provide consulting and training in the use of various

knowledge management tools.

Research and information searches, based on the information

needs of PwC staff & partners.

Participating in the strategy design, related to global

Knowledge Management & Innovation Management.

Knowledge Center
PwC Mexico

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Reach us
Jos Antonio Quesada
Partner Clients & Markets
jose.antonio.quesada@mx.pwc.com

Manuel Flores De Orta

Sr. Specialist Manager Knowledge Management and Knowledge Center Clients & Markets
manuel.flores.de.orta@mx.pwc.com
+52 (55) 5263-8543

Alexandra Mendes
Consultant
alexandra.mendes@mx.pwc.com
+52 55 5263 6000 ext. 7536

Ekaterina Ponkratova
Consultant
ekaterina.ponkratova@mx.pwc.com
+52 55 5263 6000 ext. 7586

Itzel Andrade
Consultant
itzel.andrade@mx.pwc.com
+52 55 5263 6000 ext. 5574

2015 PwC Mexico. All rights reserved. PwC (www.pwc.com) provides industry-focussed assurance, tax and advisory services to build
public trust and enhance value for our clients and their stakeholders. More than 163,000 people in 151 countries across our network share
their thinking, experience and solutions to develop fresh perspectives and practical advice.
PwC refers to PwC Mexico which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which
is a separate legal entity and does not act as agent of PwCIL or any other member firm. No member firm is responsible or liable for the acts
or omissions of any other member firm nor can it control the exercise of another member firms professional judgement or bind another
member firm or PwCIL in any way.

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PwC Mexico

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