Mexico. After the admirable health sector, the operation in this telecommunications pandemic is being the most dynamic, which is why its activity has been determined as essential in social and economic life in Mexico. The investments of most of the companies that make it up, especially the cable companies and competitors in the mobile segment, have been crucial to sustain this operation, I insist, crucial.
In addition, companies in the sector require detailed and timely primary information (data), which today more than ever constitutes an essential input to develop strategic analysis and proceed to make investment, regulatory, and competitive structure decisions, especially in these times of health and macroeconomic crisis.
Information Lag. In this regard, a primary source of information is the Federal Institute of Telecommunications (IFT), whose mandate indicates the generation and publication of timely and detailed market information. It is worrying that its schedule of publications of sectoral information is significantly lagging behind.
In recent days, the IFT announced that due to the health emergency it would extend the deadlines for the delivery of information, which would further distance the regulator from fulfilling this task.
On the other hand, in the health sector, there is daily, timely information, segmented geographically (state, city, colony, etc.), not exempt from strong methodological criticism and interpretation, but it is better than nothing.
As I pointed out above, this circumstance is even more critical during the current scenario of pandemic, uncertainty and economic crisis, when it is necessary to have even more timely and robust information, to continue facing this otherwise complex situation.
The current year already reaches the third quarter, while the most recent statistics provided by the regulator date from last year, in its fourth quarter.
Mobile Market Outlook for Q2-2020. Precisely, for some days now, telecommunications operators have begun to present their operational and financial reports to the stock exchange corresponding to the second quarter of 2020. These already allow us to measure the impact of the pandemic on traffic, contracting, recharges, spending and on the general dynamics of the provision of mobile services.
According to this numeralia and with timely estimates from The Competitive Intelligence Unit (The CIU), mobile revenues would be in the vicinity of $60 billion pesos during Q2-2020, at least 15% lower than the figure reached in the same period of 2019.
In its competitive structure, the preponderant economic agent, Telcel, continues to increase its market share to reach 73% of total revenues, while 18% correspond to AT&T, Movistar above 8%, and Mobile Virtual Operators would exceed 0.5% of the total, due to the arrival of new disruptive offers and new players in the segment.
This shows in detail the economic ravages of the pandemic, both in consumption and in the contracting of services, when there was a disconnection of 1.7 million prepaid lines by Telcel, as a result of the barriers imposed on mobility and consequently, on obtaining recharges, due to the necessary social confinement.
However, the importance of the regulator's work is clear, both in promoting competition, in supervising the efficient development of markets, as well as in providing timely information for sectoral decision-making, especially during this critical period for the operation of telecommunications companies.
Text written by Ernesto Piedras of The Competitive Intelligence Unit, CIU.
