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Telecommunications a Key Driver of Economic Growth in Mexico


07/01/2009

Mexico’s telecommunication sector grew almost five times faster than the economy as a whole between 1990 and 2007, attracting increased investment and productivity to the Latin American country.

Mexican telecom companies earned revenues equivalent to US$28.99 billion in 2007, and will generate $36.4 billion in 2013, according to recent projections market researchers at Frost & Sullivan.

“The wireless telephony traffic’s growth rate was 60.5 percent in Q1 2008, an increase of more than 20 percent over Q1 2007, meaning that this is the most dynamic sector of the telecommunications industry,” commented Frost & Sullivan analyst, Jose Manuel Mercado. “In 2007, it contributed 6 percent to the gross domestic product (GDP); in 1990 the contribution was around the 1.1 percent.”

From 1990 to 2007, Mexico’s telephone density (the number of landlines per 100 inhabitants) increased from 6 to 19, while the number of mobile phones per 100 people grew from 0 to 65.



 

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