The Mexican tower industry is also being transformed. Out of the 22,500-23,000 Mexican telecom towers, around 14,000 are owned by Telcel, 8,000 by American Tower, 600 by Mexico Tower Partners and 250 by IIMT. It has been estimated that 70,000 towers are needed in Mexico to reach 90% coverage. An astounding figure especially if we take into consideration that Mexico has one of the highest costs per tower in the region. Mexico is certainly one of the most attractive growth markets in the global tower industry.
Cconstitutional amend aimed at transforming the Mexican telecommunications industry led to the creation of a new regulatory agency, IFETEL, with constitutional status and a mandate to ensure economic competition and universal coverage. The new body is independent from the executive and legislative powers, unlike COFETEL, the previous acting agency.
By looking at the current status of the market, the rationale behind the reform is evident. Out of the four carriers active in Mexico, América Móvil’s Telcel, is the most powerful actor with market share beyond 70%, with the remaining market being split among Movistar, Iusacell and Nextel. Changing the status quo in a country where one company has such a strong position is not an easy task and we will have to wait until the secondary legislation comes into place, later this year, to fully evaluate the practical impact of the reform.
The TowerXchange Mexico case study includes:
The Mott MacDonald Share Square for Mexico
BMI: perfect storm for investment in Mexican towers
Mexico Tower Partners: Marc Ganzi’s “poster child for data”
IIMT: 70,000 towers needed to achieve 90% coverage
Ve Por Más: could infrastructure sharing be mandated?
Intelli Site Solutions on rooftops, billboards and IBS in Mexico
