Fox News recently reported that Spain’s Telefonica Corporation will invest at least $500 million in Mexico this year. The investment will help the company achieve improved coverage and better service throughout the country.
“Accumulated investment over the company’s 11 years in Mexico, including the purchase of wireless operations and outlays to expand infrastructure and other services, amounts to some $12 billion”, stated Telefonica’s CEO Juan Antonio Abellan.
He went on to say that the communications giant plans to continue a high level of investment in Mexico, although it has not released numbers for 2013.
“Mexico is a fast-growing Latin American country in which the middle class accounts for 53 percent of the population, ” he said. “The wireless market has been dominated for years by a single operator – Telcel".
He compared this to the situation seen in recent years in both Germany and Spain, both of which experienced a level of market concentration that did not encourage lower prices. For example, Telefonica’s competitors still charge for “roaming,” which refers to calls placed outside of a designated coverage area.
Telefonica operates in Mexico under the Movistar brand name. The company recently launched a variety of new services, such as fixed and mobile telephone coverage, Internet and radio, providing customers with new state of the art services. According to Fox News, Telefonica is currently Mexico’s second largest wireless provider, boasting a network that covers 90 percent of the population and that has already captures a 22 percent market share.
“The new product entirely eliminates national roaming charges, while all calls to landline or cellular phones in Mexico, the United States and Canada will have a single rate of $0.07 per minute.”
These advancements are excellent news for Mexico real estate and will provide improved service for expats and locals alike throughout the country.