How the pandemic impacts fixed telco services in Mexico

Lockdowns and mobility restrictions have positively impacted Mexico’s fixed telecom sector, with new data suggesting changes in technology trends and market share took place during the first half of 2020.

Data published Thursday by telecom regulator IFT shows that from June 2019-June 2020, fixed access to pay TV services increased 37%, access to the internet through fiber optics grew 34%, and fixed telephony registered a growth of 6.5%.

While the numbers relate only to 1H20, they cover the critical period in which authorities began implementing lockdowns to avoid the spread of COVID-19, students began taking classes remotely and millions of workers switched to telework. 

“During the first six months of 2020, fixed telecommunications services remained upward, even at growth rates higher than those observed during 2019,” IFT said in a statement. 

Fixed internet

Mexico registered 20.4mn fixed internet accesses, 1.6mn more (8.5%) year-over-year. 

Of those, fiber optics was the most common type, representing 1.4mn. Fiber is the most used for fixed internet in Mexico, with an estimated 27% share by the end of 1H20. 

America Móvil’s fixed service company Telmex has 48% of the market share and is followed by Grupo Televisa (25%), Megacable (16%), Total Play (10%) and others (1%).

By the end of the first half, 94.7% of all links had a speed of at least 10Mb/s.

In comparison to mobile lines, there were fewer fixed internet lines disconnected between December 2019-June 2020. Some 2.8mn lines were disconnected, according to the report. 

Cable TV

Access to cable TV reached 20.3mn, a small increase of 0.2%. 

The increases were concentrated in areas with the highest numbers of pay TV contracts though, like Mexico state, Mexico City, Jalisco, Veracruz and Nuevo León states.

The most used technology in this segment is satellite, with 56%, while coaxial cable represented 37%. However, terrestrial connections jumped the most during the first half of 2020, an increase of 37%. 

Fixed telephony

Fixed lines went from 21.4mn to 22.8mn in a year. 

This market is also controlled by Telmex (51%), followed by a group of other providers (19%), Megacable (11%), Grupo Televisa (10%) and Total Play (9%). Back in 2013, América Móvil controlled more than 70% of this segment.