Transcript No Slide Title

U.S. Commercial Service
U.S. Embassy
MEXICO
IP TELEPHONY:
THE MEXICAN MARKET
Todd Avery
Commercial Attaché
U.S. Embassy – Mexico City
Role of New Technologies
• Facilitates global trade, competitiveness, and economic
development
• Consolidation and convergence bring new business models
• Direct competition for last mile access
• Increased digital coverage in underprivileged rural areas
• Convergence increases the benefits of Information and
Communication Technologies to all
New Technology Trends
• Broadband, Wireless and VoIP technologies
• Value Added Services
• Focus on SME’s
• Convergence and mobility
– Business opportunities:
• Telecom equipment: Wireless, VoIP, security devices
• Content: Enterprise applications, Entertainment
• Networking: Unified messaging, Collaboration, Multimedia, Conferencing,
Telemetrics, and broadcasting
VoIP Around the World
$10USD million earmarked for Interlink’s VoIP project, April
11, 2005
CHILE
VENEZUELA
US-based operator Interlink Global is undertaking a USD10
million regional IP telephony upgrade project in Chile and
Venezuela, and says it hopes to spread its VoIP services to the
whole of Latin America. The project will involve rolling out
corporate VoIP services similar to those that it currently offers in
the US, including Wi-Fi access. Interlink Global was created when
Interlink (Chile) launched services aimed at business users in
partnership with an American start-up company last month. It
recently introduced services in Venezuala after acquiring a local
operator and currently offers pre-paid cards for conventional local,
long-distance and international telephony.
http://www.telegeography.com/cu/article.php?article_id=6686
VoIP Around the World
FCC acts to end VoIP blocking
USA
The Federal Communications Commission (FCC) has fined North
Carolina-based broadband provider Madison River Communications
USD15,000 for blocking VoIP calls. A consent decree by the FCC
prevents Madison from blocking VoIP calls for 30 months. VoIP
provider Vonage has confirmed that it complained to the FCC about
Madison River last month, leading to the FCC’s investigation.
Cable companiess report strong VoIP takeup, April 12, 2005
USA
According to a report by the Financial Times, New York cable
company, Cablevision, is adding 1,000 telephony customers a day,
reporting 350,000 in total at mid-March. Time Warner Cable,
meanwhile said that at the end of 2004 it had 220,000 VoIP
customers, adding 10,000 per week.
http://www.telegeography.com/cu/article.php?article_id=6704
VoIP Perceptions in Mexico
• Market sees good projected growth for 2005 – 2006
• Technology developments in IP and Broadband provide for
Convergence: voice, data and video; in time it will incorporate
broadcasting services as well
• Users see IP based solutions as:
– Mature
– Secure
– Redundant
– Reliable
• Operators are offering integrated solutions:
– Infrastructure
– Consultancy
– Administration
Market Trends
• The development of new technologies, VoIP, will not stop
– Convergence will lead technology innovation based on wireless and
IP Protocol solutions
• Narrowband maintains a market niche
– Older users, less savvy users, occasional users
• CATV: will they be able to offer voice services directly?
– This could promote a more competitive market
• Incumbent dominates Broadband deployment through copper
cable, ADSL, and rents its lines to other operators
– ADSL will outgrow cable modems 3 to 1 by 2006 (Morgan Stanley)
How Fast is ADSL Growing in
Mexico?
ADSL User Growth
3,483,577
2,345,616
1,276,944
580,429
67,366 194,930
2002
2003
2004*
2005*
Year
Source: Select
2006*
2007*
Voice Equipment in Mexico
• IP PBX systems growing
in demand
Revenue Distribution by Type of Equiment
6%
• Participation moved
from 6% in 2002 to
49% in 2004
8%
• Hybrid systems also with
strong growth, from 8% in
2002 to 21% in 2004
7%
8%
86%
49%
84%
21%
30%
• Those users most
likely will eventually
move to complete IP
systems in the future
2002
2003
2004
Year
PBX/KTS Systems
Source: Select
Hybrid PBX
IP PBx
Challenges Ahead
• The development and implementation of new technologies in the fixed
and wireless telephone services, and broadband Internet access can
help boost competitiveness and productivity
• Regulation that considers convergence and competition will support
other needed reforms such as in energy, fiscal and labor issues
• Cheaper prices in telecommunication services through competition
• Global competition forces the US and Mexico to strengthen their trade
and other relationships between each other
• North America needs to move away from competing through cheap
labor, and integrate within the New Economy environment
US – Mexico Cooperation
• NAFTA
– Greatest opportunity for economic growth
– U.S.-Mexico Trade increased 186% from USD 88 billion in 1993 to
USD 252 billion in 2003
– Elimination of Barriers in Key Sectors
• Partnership for Prosperity (P4P)
• Security and Prosperity Partnership (SPP)
Partnership For Prosperity
P4P
• Goals:
– Greater Economic Prosperity
– More Purchasing Power
– Decreased Migration
• Tools:
– Technology and Innovation Working Group
•CONACYT and CCE
•US Embassy and AMCHAM
•Increase use of ICTs for PyMEs
•Increase investment in infrastructure for commerce
Security and Prosperity Partnership
SPP – Mexico, Canada, and U.S.
• Goals:
•
•
•
•
Establish a common approach to security
Enhance competitive position of North American industries
Provide greater economic opportunity for all
Improve quality of life
• E-commerce and ICT Working Group
• Reduce online business costs
• Encourage private sector self-regulation
• Support a transparent, predictable, just and
nondiscriminatory legislative and regulatory regime
• Eliminate redundant testing and certification requirements
Security and Prosperity Partnership
SPP – Mexico, Canada, and U.S.
• E-commerce and ICT Working Group
• Raise ICT penetration levels
• Improve the low of e-commerce
• Eliminate redundant testing fees
• Upgrade online transactional security
• Prevent the creation of artificial barriers.
U. S. Commercial Service
• An Agency of the U.S. Department of Commerce
• Mission is primarily to help small and medium size, exportready companies to enter new markets, and to protect
U.S. Business interests abroad
• Network of 100+ offices in the U.S. and 160 world-wide
Services for Mexican Firms
• International Buyer Program
• Commercial News USA
• Business Service Provider Program
US Commercial Service Events
Supercomm 2005
• Delegation of Mexican entrepreneurs to assist at the
largest IT and telecom trade fair in the US.
• Focused meetings
• Hotel and air discounts
• Workshops
Contact:
• [email protected]
• https://www.buyusa.gov/mexico/es/supercomm.html
U.S. Commercial Service
U.S. Embassy
MEXICO
THANK YOU!
IP TELEPHONY:
THE MEXICAN MARKET
KAREN L. ZENS
MINISTER COUNSELOR FOR COMMERCIAL AFFAIRS
May 3, 2005