Connectivity Becomes Major Contributor to Mobile Revenue Growth in Mexico

­Data services in Mexico will grow to represent 25 percent of the total market in 2014 from 15 percent in 2009, as connectivity becomes one of the most dynamic contributors to total mobile revenue growth in the coming years, according to the latest report from Pyramid Research.

Mexico remains one of the most attractive communications markets in Latin America given its size; by year-end 2008, it was the second-largest market in the region at $27.1 billion, notes Cesar Jimenez, Senior Analyst at Pyramid Research and author of the report. "Over the next five years, Pyramid Research expects Mexico's total market revenue to reach $29.9 billion, with mobile services revenue to account for 61 percent of the total market," he says. "Main drivers of the growth are the expected expansion of mobile subscriptions - fueled by intensified competition between Movistar and Telcel, which is helping to bring down the prices of services and to boost mobile data adoption - data services uptake, and the adoption of multiplay bundles."

"The increasing adoption of advanced portable devices and the growing interest in mobile content and wireless broadband connectivity are strong signs of sustained demand for non-messaging mobile data services in Mexico," Jimenez says. "Pyramid expects connectivity to become one of the most dynamic contributors to total mobile revenue growth in the coming years," he adds.

Pyramid projects that mobile broadband and infotainment services together will represent 64 percent of total data revenue in 2014. The evolution of Ideas Telcel, Iusacell's netbook bundles and Movistar's exclusive content is fueling competition in the mobile broadband market.

Posted to the site on 22nd September 2009