News
With competition due to heat up in Mexico in 2016, any newcomer to the market would face a difficult path.
Millicom on Friday declined to comment on reports that it is considering launching telecoms and/or TV services in Mexico.
A spokesperson for the telco described reports in the Latin American press as "rumours and market speculations" and said it would not comment.
Financial publication El Economista noted that recent reforms in the Mexican telecoms market, and projected market growth, have made it more attractive to newcomers. It cited two unnamed sources as saying that Millicom is eyeing the possibility of launching in Mexico, but that a firm decision has yet to be made.
The paper speculated that through Tigo, its operating brand in various markets, Millicom could tap opportunities in converged services in Mexico, thanks to its existing capabilities in pay TV, fixed and mobile telephony and broadband Internet. It also suggested that Tigo could find a strong market for its mobile financial services.
While Millicom has significant experience in the region that could help with such a move – it operates in eight markets, including Bolivia, Colombia, Guatemala and Paraguay – it would not find it easy to compete with Mexico’s big three.
America Movil dominates the country’s fixed and mobile market, but as yet has had no luck in persuading the regulator to grant it a licence to offer pay TV services.
It competes primarily with Telefonica, which operates as Movistar, and AT&T, whose entry into the market was facilitated by the aforementioned regulatory reforms.
AT&T acquired Iusacell and Nextel Mexico in the first half of last year and is working hard to build up its presence in the market, including rolling out LTE services and introducing the AT&T brand. It is also keen to create a single service area between Mexico and the U.S.
It is safe to say that its rivals will not rest on their laurels, so 2016 looks set to be a year of intense competition in the Mexican telecoms space.
