Joel Pacheco Gonçalves
I’ll do my best to make this post short and concise, so here you have the three most important results of the Mexican Telecommunication Reform and why you should focus on your opportunities in MDC Data Centers for developing this emerging market.
One: The telecom reform encouraged competition, drove down prices and increased Internet’s penetration
It created two regulators, the Federal Institute of Telecommunications (Ifetel), which can revoke operating licenses for companies employing monopolistic practices, and the Federal Commission of Economic Competition, which promotes competition and seek to restrain companies from controlling more than 50 percent of market share.
Also, it increased investors confidence by allowing foreign investments to grow from 49 % to 100 %, except in radio.
These conditions favored growth with significant results: Telecommunications prices fell by 23 %; household Internet penetration surpassed 40 %, and the telecom sector tripled Mexico’s GDP growth witnessing an 8.4 % year-over-year increase in revenue.
Two: Mexico now has faster internet with better infrastructure
Today, more than 75 % of households have internet speed between 10 and 99.9 Mbps. Compared to early 2015, when 85 % was under 10Mbps, this is a huge step forward. This improvement in Internet speed is going hand in hand with investments of Mexican carriers in technology, more capacity, and connectivity.
This dynamic explains the concentration of Mexican carrier in MDC Data Centers, seeking opportunities for more capacity and connectivity. Over the past two years, Mexican operators have bought more than 1 Terabyte of IP Transit from providers within our ecosystem, and this trend keeps going up.
Continue reading: Why Mexican carriers aren’t making the long trip to Dallas anymore.
Three: Massive investments will maintain growth in Mexico’s telecom sector
Foreign Direct Investment (FDI) in the Mexican telecom sector had accounted for less than 1% before the regulation took place, and it reached almost 10% by the end of 2015. According to the Secretariat of Communications and Transport more than $6.5 billion has been invested over the last three years. Also, the upcoming nationwide shared broadband network will attract more than $10 billion over the next decade.
At MDC, we have worked together with Mexican carriers for years to understand their needs better and to assure that our services are up to their expectations. We host the largest selection of Mexican carriers in the country and have helped many ISPs to serve the Mexican market successfully. Also, we provide carrier-neutral connectivity in the border with our International Fiber Crossing, the only carrier-neutral fiber across the US-Mexico frontier.
The reason I am passionate about my job is that not everybody has the privilege of contributing to a more connected world, and it feels fabulous. At MDC, we are all committed to providing world-class service while helping companies grow through interconnections.
If you want to know more about MDC Data Centers, or the ever-growing Mexican telco sector, don’t hesitate to drop me a line at email@example.com and I’d be more than happy to talk further and help you achieve your goals, efficiently and reliably.
Thanks for reading! (and sharing)