Friday, 9 October 2009

Cofetel Commissioner looks for new MVNOs in 2010 – Mexico

Disappointed with the lack of competition in the Mexican mobile market, Cofetel’s Commissioner Jose Luis Peralta has been quoted by Total Telecom as promising changes to current MVNO legislation. New legislation is now expected for 2010 which will streamline the process for authorising an MVNO and resolve issues around porting numbers.

The Mexican mobile market is dominated by Telcel with a 72% market share as of Q4 2008. Although MVNOs are allowed in the country not one has launched commercially even though there are 3 other MNOs who could host them. In the 2nd half of 2008 number 2 MNO, Movistar, grew its subscriber base by over 1 million subscribers. This rate of growth potentially indicates that the 2nd place operator would rather win its own 100% business from Telcel rather than venture with MVNOs. The 3rd and 4th place operators seem to have their own network infrastructure issues to deal with too before they let MVNOs onboard. Nextel operates an iDEN network and IUSACell is in the process of building out a GSM network in favour of its current CDMA network. Any real movement in regard to MVNO launches will probably require a regulatory push aimed at Telcel.