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The April 23, 2002 Issue Provided by System Dynamics Inc.
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Mexico: Broadband Heats Up

[The following report is by Catherine Duenas and Jeffrey Rosenberg, co-founders of i-modulo, which consults in public relations and strategy for broadband technologies, and digital entertainment. i-modulo is currently working on projects with Canitec.]

The buzz at last week’s Canitec, Mexico’s equivalent to the NCTA in the US, was broadband. All sessions focused on the digital delivery of value added services such as interactive television, high-speed internet, and telephony over cable, all of which seem to offer alternatives to increase the sector’s eroding margins.

Every major operator seems excited at the prospect of offering digital services to its subscribers. For the first time, upcoming legislative changes may provide the cable industry with the opportunity to offer IP telephony. The nation’s top three MSOs – Cablevision (450,000 subscribers), Megacable (400,000 subscribers), and Cablemas (300,000 subscribers) – are on standby, and waiting to react aggressively to the first sign of change in their favor.

Today approximately 23 systems offer broadband Internet services to about 130,000 subscribers. Approximately 80,000 of these broadband subscribers are located in Guadalajara and Monterrey, areas serviced by giant Megacable. Currently Mexico’s cable subscriber base stands at 2.6 million representing only 12% of households.

( www.i-modulo.com ) ( www.canitec.org )