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Thursday, 01/25/2007 10:48:12 AM

Thursday, January 25, 2007 10:48:12 AM

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The Mexican telecommunications market could see revenues from voice services rise 9% to US$22.2bn in 2007 compared to 2006, according to a report by Mexican tech consultancy Select.

The main driver of the growth will be the highly competitive mobile services that should account for US$14.6bn, or 66% of revenues.

Select sees the calling party pays scheme for domestic long distance calls, which came into being on November 4 last year, likely to spawn around 20% in additional calling revenues this year.

In addition to increased subscribers, revenues and traffic, Select analyst Susana Espinosa thinks that the telecoms industry will see more triple play offerings in 2007.

However, Espinosa believes an ongoing regulator conflict with fixed line incumbent Telmex will likely slow the impact of triple play service offerings in 2007. Furthermore, while technical and regulatory issues are being straightened out, the video content for services such as video on demand is still limited.

"In the end what matters in triple play is content," Espinosa told BNamericas.

Espinosa says that while video on demand and mobile content is working its way into the market, it is still an area with room to develop.

INTERNET

Select predicts further uptake of internet subscribers in Mexico, with forecasts of a 12% increase to five million internet subscriptions by end-2007. Dial-up will likely continue decreasing in usage, though a niche market for dial-up will likely continue to exist for ISPs.

Another feature of triple play and packaged service offerings will be an increased fight between cable and DSL service. However, the company predicts that DSL usage will likely gain more ground over cable, but broadband in general will account for three quarters of the internet market in 2007.

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