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CIU Analysis: Invisible but Essential Capital

ciu logoMexico. Mexico is characterized by an infrastructure deficit, definitely the connectivity and telecommunications sector is no exception. Any addition of these investments in nodes and networks that underlies the social and economic operation of our country is welcome, as an "invisible" but essential capital.

Moreover, when it has cutting-edge technology and coverage that compensates for the inequities prevailing in Mexico, to fulfill the constitutional recognition of the basic right to connectivity.

In that sense, one of the promises of the Constitutional Reform of Telecommunications that today we see in progressive materialization is Shared Network (RC), under the operation of Altán Redes, with accelerated efforts in the fulfillment of its milestones, not only of coverage, but also and above all of active users.

Since the second quarter of 2018, Altán Redes began to offer wholesale mobile telephone and internet services in Mexico to traditional operators with their own infrastructure, with a marked focus on enabling the thriving segment of Mobile Virtual Operators (MVNOs), which in some cases already offer quadruple play (video, voice, data and cellular). All this contributes to having a growing offer and alternatives of consumption and services.

- Publicidad -

Milestone in Active Users: 1 Million. During the first half of the year, Altán made important agreements to provide capacities to companies that launched disruptive offers in baskets and prices of services, offering unlimited mobile navigation (with fair use policy limited to 20 GB) from $ 200 pesos per month, in addition to voice and short messages (SMS) also unlimited. With its offer, izzi móvil shook the market to detonate a 'wave' of packages that seek to compete with it, from other MVNOs and even established operators.

This tariff scheme with consequent and marked economies in the pockets of consumers has allowed Altán to reach an approximate of 300 thousand users of mobile services (telephony and data) in active as of August 2020, among an aggregate of more than 20 companies that offer these.

Another growing line of business is the Home Broad Band (HBB), the home broadband internet service, which uses deployed mobile data download capabilities to meet home connectivity needs.

During the confinement caused by the new coronavirus, work, school, entertainment, socialization and even the provision of goods, we carry out from home through access to the internet and digital platforms. In this "digital push",connectivity has gained essentiality, especially in areas lacking fibre optic coverage. Precisely in these, the coverage footprint of CR becomes relevant so that users can continue with their daily lives in this evolution to the 'new abnormality'.

In this way, at the end of August, Altán reached a figure close to 700 thousand active connections of HBB, from the offer of services of 15 operators. This numeralia not only demonstrates the efforts to close the connectivity gap, but also translates into a growing market share for these providers between total access and an acceleration in growth in their user base.

Thus, through both lines of business (mobile services and connectivity at home or HBB) that converge in the use of the download capabilities and mobile data speed of the RC and that allows Mexicans to continue connected at affordable prices, Altán has managed to reach 1 million active users.

Promise Fulfilled and Success Model. This model of deployment and provision of infrastructure capacities continues to accumulate fruits, since its incubation as a government public policy. It is foreseeable that derived from the fulfillment of coverage milestones and connectivity offer approach in areas of difficult access where there is currently no access to mobile services and internet, the growth in active users will continue its upward trajectory and represent an opportunity to provide connectivity for telecommunications companies from the capabilities deployed.

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In times of pandemic and even after it, the internet will continue to be, to a large extent, the support of the productive, social, educational, cultural operation, among others of our country. Today Mexicans find a consolidated alternative of connectivity and data download capabilities through the Shared Network.

Text written by Ernesto Piedras of The Competitive Intelligence Unit.

Richard Santa, RAVT
Author: Richard Santa, RAVT
Editor
Periodista de la Universidad de Antioquia (2010), con experiencia en temas sobre tecnología y economía. Editor de las revistas TVyVideo+Radio y AVI Latinoamérica. Coordinador académico de TecnoTelevisión&Radio.

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