The Mexican Cell Phone Market

Paper Summary:

This paper explains that cell phone development groups already exist in Mexico and that CDMA operators worldwide are focusing on expanding roaming relationships in Central and Latin America. The author stresses that the long-held stereotype of Mexico as a country where life is languid and the population consists mostly of subsistence farmers has little basis in the reality of present day Mexico. The paper concludes that the country's large size, concentrated population bases and relatively underdeveloped telecommunications system mean that wireless services such as AT&T Mexico (Alestra) and Verizon will be in increasing demand. Map. Charts.

Table of Contents
Introduction
Review and Discussion
Market Potential for Cell Phones in Mexico Today
Definition of Market Potential for Cell Phones
Financing Alternatives
Current Statistics, Demographics and Psychographics
Conclusion

From the Paper:

"Recent Mexican administrations have expanded competition in seaports, railroads, telecommunications, electricity, natural gas distribution, and airports. Income distribution remains highly unequal. However, in their general assessment of telecommunications, the CIA reports a low telephone density in Mexico with only about 12 main lines per 100 persons currently; however, the telephone system was privatized in December 1990 and opened to competition in January 1997 which improved prospects for development. From a domestic perspective, there is adequate telephone service for business and government; however, the general population continues to be poorly served. There is, however, an increasing use of the Mexican domestic satellite system with 120 earth stations; extensive microwave radio relay network; considerable use of fiber-optic cable, coaxial cable, and most importantly for the purposes of this research, mobile cellular service."

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