Cofetel: Telecoms Sector Grows 21.5% in 2005

Mexico's telecommunications sector grew 21.5% in 2005 compared to 2004, according to telecoms regulator Cofetel's production sector index ITEL.

The sector saw growth of 18.5% in the fourth quarter of the year.

The year's growth reflected trends in the Mexican economy, which grew an estimated 3% in 2005 compared to 4.2% in 2004. National long distance traffic rose 2.8%, in line with economic growth.

Incoming international long distance calls registered the highest growth rate, rising 60.3% in 2005, mainly because of expansion in the US economy and a fall in calling rates from the US to Mexico. However, outgoing international long distance fell 3.5% in 2005.

Mobile telephony also surged last year growing 35% compared to 2004 and ending 2005 with a total of 47.5 million subscribers. The mobile telephony market accounted for 71.2% of growth in the sector.

Postpaid and prepaid mobile calling rates fell 6.2% and 6.5%, respectively, in real terms compared to 2004.

Fixed line users rose to 19.5 million, up 8% compared to 2004, while cable TV subscribers increased 12.3% to 3.2 million. Satellite TV services saw an 8.3% growth during the last quarter of the year.

2000-2005

Over the five-year period 2000-2005 the number of fixed lines grew 58.3% to 19.5 million with an 18.9% penetration rate compared to 12.6% in 2000.

Mobile subscribers rose 3.4 times to 47.5 million with a 46.1% penetration rate compared to 14.4% in 2000.

The telecommunications sector has received investments of US$18.8bn since 2000.

Internet use increased 3.7 times to some 18.6 million users in 2005. Prepaid mobile rates have fallen in real terms by 59% for outgoing calls and 18% for incoming calls over the five-year period. Postpaid calling rates have dropped 64.4% for per minute charges within a specific plan and 36% for additional minutes.

BNamericas.com"

Posted to the site on 15th March 2006