Wireless to top fixed-line revenue in Mexico in 2006

Mexico residents will be spending more on wireless services than on traditional fixed-line services by 2006, a study predicts.

Wireless voice and data revenue will grow at a compound rate of 21 per cent over the next five years, rising from US$4.4 billion in 2001 to $11.7 billion by the end of 2006, when traditional fixed-line revenue will reach $10.8 billion in Mexico, the Yankee Group said this week.

In terms of subscriber numbers, wireless surpassed fixed line in Mexico in 2000. In a study released last year, the Yankee Group predicted that the number of wireless subscribers in Mexico will grow from 14.1 million in 2000 to 35.5 million by the end of 2006, or 33 per cent of the country’s population.

An impressive 93 per cent of the country’s wireless subscribers will be on prepaid plans by the end of 2006, according to this week’s predictions.

Mexicans are also expected to warmly embrace broadband technologies over the next five years. Revenue derived from ADSL (Asynchronous Digital Subscriber Line) service and from cable modem connections will increase at a compound annual rate of 85 per cent and 35 per cent, respectively, the Yankee Group said this week. ADSL and cable modem are broadband technologies that let users connect to the Internet at much higher speeds than are possible using regular dial-up service.

Consumers and small and medium-size businesses are the primary market for these two technologies, because service costs less than the dedicated lines large companies lease from carriers for high-speed Internet connections. Revenue from leased lines will actually drop at a compound rate of 2 per cent over the same time period in Mexico, according to the Yankee Group.

The Yankee Group, in Boston, can be reached at +1-617-956-5000 or athttp://www.yankeegroup.com/