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Megacable and Televisa gain market in fixed telephony

The companies Megacable-MCM, Televisa and Total Play gained share in the fixed telephony market in Mexico in the second quarter of 2020, according to the latest data available from the Federal Telecommunications Institute (IFT).

On the one hand, the largest player in the sector, América Móvil (Telmex), had a market share of 50.7%, lower than the 56.2% it obtained in the same period of 2019.

In June 2020, the number of fixed telephone lines without considering public telephone booths, reached 22.8 million lines throughout the national territory.

With this, the penetration of the service reached 65 lines for every 100 households.

On the other hand, Televisa increased its market share to 21.4 to 24.2%, comparing the same periods.

Televisa participates in Mexico through its subsidiaries Izzi, Bastel, Cablevisión, Televisión Internacional, Cablevisión Red, FTTH and Cablecom.

Fixed telephony

Megacable-MCM increased its market share from 10.5 to 11.5%, while Total Play had an advance of 6.6 to 8.9% percent.

Other losers were Axtel (from 2.2 to 2.1%) and Telefónica (1.9 to 1.6 percent.

As of the telecommunications reform, in 2014, Foreign Direct Investment (FDI) in the telecommunications sector is allowed to reach up to 100 percent. Previously there was a limit of 49% for fixed telecommunication services and satellite communication services.

Foreign companies must be incorporated in Mexico to operate in the telecommunications market. The opening to foreign investment has resulted in the entry of new operators to the market and the execution of various investment projects.

Lastly, the institutions that operate in the sector are the Ministry of Communications and Transportation (SCT) that defines and implements the telecommunications policy, and the IFT that regulates the sector.

 

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