Articles tagged with: Telcel and Danger

Mexico Market Update - Telcel Goes for Quality over Quantity

telcel (América Móvil) continues to dominate in Mexico with a total of 46.1m subscribers. The market as a whole stands at 62.1m, with total net additions of 11.4m year on year, a 22.6% annual growth rate. This is a respectable rate of expansion, and it represents an improvement on the 21.4% rate of growth seen in the 2006 calendar year, as well as the 20.2% annual growth to Q2 2006.

Penetration in Mexico stood at 57.1% at the end of Q2 2007, up 10pp from Q2 2006, so the market still holds plenty of potential.

However, growth actually slowed in the first two quarters of 2007, largely due to telcel's performance: at 1.2m, its figure for quarterly net additions in Q2 2007 is its lowest since Q2 2004 and it has the second lowest quarterly growth rate across the América Móvil group. The reason for this is not sluggishness on telcel's part, but a shift of focus away from raw subscriber growth towards an improvement in the quality of its customer base. Contract customers now account for 7.3% of its total subscribers, up 0.5pp year on year. The following chart demonstrates how the improvement in customer base compensates for the decline in new connections. more

Related Tags: iden, movistar, iusacell