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Mexican Data Communications Services Market
Frost & Sullivan, May 2006
This Frost & Sullivan research service of the Mexican Data Communications Services Market provides an overview of the current data communications market in Mexico and trends that may impact the current status of the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the technologies: IP solutions, frame relay, dedicated lines, ATM, X.25, and Ethernet technological platform.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Market/Application:
- Retail
- Wholesale
- International
- Value Added Services
Technologies
The following technologies are covered in this research:
- IP (VPN, MPLS, Dedicated Internet Access): IP data services provide companies with vast bandwidth capacity for a variety of services including Internet access and Web-based services. These services can be contracted starting at 64 Kbps through Nx64 Kbps to E1, E3 or STM1, STM4 and even STM16. Migration to IP platforms is easier and allows companies right from multinationals to small enterprises to adopt these solutions. It provides companies with an adaptable method of communicating data and allows bundling of applications on a single service.
- Frame Relay: These services provide the right amount of bandwidth required to link satellite locations or remote offices to the corporate offices of most major corporations. They are among the lowest and most effectively priced data services available. These services have a bandwidth ranging from 64 Kbps to 2.0 Mbps (E1) and even above in some cases.
- ATM: Given the multi-service, multi-protocol nature of the ATM technology that allows prioritization of the information transmitted, it offers obvious advantages over other technologies.
- X.25: These data services have a bandwidth which is limited to 19.2 Kbps. Users of X.25 data services include travel agencies, newswire services as well as power, gas and oil distribution networks.
Market Overview
Increasing Competition Aids in Data Communications Services Market Growth
The data communications services market is one of the most rapidly growing business sectors in the Mexican telecommunications industry. The market, which was until recently monopolized, has been witnessing healthy competition from new participants, states the analyst of this research service. The growing number of vendors has helped meet the demand from U.S. and Canadian companies that have established interests in Mexico, since the signing of the North American Free Trade Agreement (NAFTA) and wish to acquire data communications services. Rising competition is also expected to significantly enhance the performance and quality of service as well as technology.
The demand for data communications services comes primarily from large organizations that are looking to globalize. They have realized the need to interconnect diverse locations to better control operations and quickly respond to changing business needs. Voice services can be handled more cost effectively if they are digitized and managed as data services. Incumbent data services providers are offering various solutions with wider bandwidths through technologies such as Internet protocol virtual private network (IP VPNs), frame relay, VPN, and dedicated lines. These benefits of using data services are likely to stimulate significant market growth.
Cost-effective IP Services to Boost Market Penetration in the Small and Medium Enterprises Segment
Currently, market dynamics have increased the competition level - especially in the metropolitan areas, which are the key target market for telecommunications services. IP services have already penetrated the Mexican market, providing larger companies with vast bandwidth capacity for a variety of services including Internet access and Web-based services. notes the analyst. These services are expected to accelerate penetration within the business sector.
However, as these markets gradually saturate, service providers will have to offer high-quality services at prices that are affordable to small and medium enterprises (SMEs) in the suburban and rural areas. Services providers can benefit by providing complete solutions with value-added services and support, while being aware that SME clients may not possess in-depth knowledge about the services.
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