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Telefonica targets 23-25% of Mexico's mobile market by 2010

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The mobile unit Movistar had 8.6mn subscribers in Mexico at the end of last year. TEF also expects mobile penetration in Mexico to reach 80% by 2010 compared to 53% today.

The company expects to target aggressively the postpaid segment, but recognizes the importance of continuing to improve operating margins in the mobile business. TEF will also focus on the deployment of 3G infrastructure and in the enhancement of GSM coverage across the country.

"Mexico is a very challenging market. If you can make it in Mexico, you can make it everywhere," TEF's Latin America general director Jose Maria Alvarez-Pallete said during the firm's annual conference with investors in London last week.

"Now we have a very good quality GSM network in the country... We have been able to develop a shared center for technological infrastructure with other [units] in Central America and we have reshuffled the commercial distribution network," the executive added.

Movistar Mexico competes with Nextel Mexico, Iusacell, Unefon and America Movil unit Telcel.

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