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Mexican Mobile Telephony Revenues Will Surpass $11.9 Billion Mark by 2013

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Signals Telecom Consulting has published a report which examines the Mexican mobile services market with a focus on the Value Added Services (VAS) offered by local mobile operators. The report notes that the Mexican market is characterized by a VAS offering focused on SMS services. The slowdown in subscriber growth and the development of 3G networks, however, will force operators to aggressively pursue a VAS offering that is not focused on text messaging.

"Although Mexico has VAS offerings that could be considered as successful case studies like lusaTV from lusacell, the SMS market continues to generate more than 95% of local operator data revenues," states Jose F. Otero, President of Signals Telecom Consulting and contributing report author.

Among the items pointed out by this report, one thing that stands out is the fact the America Movil, Telcel, is the local operator that has the highest number of agreements with music production and adult content suppliers. "The recent launch of the iPhone, the agreement with ROK Entertainment and the re-launch of the Ideas website are some of the initiatives taken by Telcel for promoting the consumption of value added services (VAS). The coming launch of UMTS/HSPA by Movistar Mexico will contribute to increasing the VAS offering in the Mexican marketplace. At Signals, we see Ring Tones/Music, Adult Content and Mobile TV as important generators of new revenues for mobile operators," comments Otero.

In its reports, Signals Consulting notes that it is highly unlikely that a new operator will set-up operations in the Mexican market as a result of the upcoming spectrum auction.

"The advent of new mobile operators in this marketplace could be done through a MVNO arrangement as infrastructure costs, network deployment costs, and everything related to subscriber acquisition costs are very high. If operators like Digicel and Millicom want to compete in the Mexican market, it would be more cost effective to acquire, or at least form a commercial partnership with the lusacell Group, which has launched an operation from the ground up. The only operator we see as participating in the new spectrum bidding along with Telcel, Movistar and the lusacell Group is Nextel Mexico. This is because this operator needs additional spectrum in order to be able to continue moving forward with its technological migration plans," concluded Otero.

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