NEGOCIOS Pro México pags17 19 by Israel Barcenas

Negocios ProMéxico | Cover Feature

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Government Initiatives The information and communications technologies sector in Mexico plays a key role in the government’s development strategy because of its growth potential and the favorable effect it has on other sectors and on the competitiveness of the economy in general. In response to this, constitutional reforms were made in telecommunications and competition to improve those markets with structural problems. The initiative is based on the recognition of the right to free access to information and the right to freedom of broadcasting, and the right of access to information technology and broadcasting and telecommunications services, including broadband. Telecommunications Reform Mexico faces several challenges in telecommunications, among them the big industry monopolies, high prices and tariffs, connectivity, and bandwidth. This landscape is expected to change over the next few years driven by the telecommunications reform that allows more competitiveness in the sector. Thus, the constitutional reforms on telecommunications and competition seek to further encourage industry to improve markets suffering from structural problems. The constitutional reform to telecommunications, broadcasting, and economic competition is governed by six main principles: 1. Strengthening of fundamental rights. The reform expands freedom of expression and access to information, and the rights of users to telecommunication and broadcasting services. Following the reform, telecommunications are public services of general interest, so that the State will ensure that they are provided under conditions of competitiveness, quality, plurality, universal coverage, interconnection, convergence, free access, and continuity. 2. Updating of the legal framework in the telecommunications sector. To strengthen legal certainty, a single system will be issued that regulates concurrently the spectrum, networks and services through a single concession regime. Asymmetric regulation will also be implemented and applied to the predominant economic

Cover Feature | Negocios ProMéxico

National Digital Strategy The National Development Plan 20132018 determines the establishment of a national digital strategy as a cross-sector strategy that encourages the adoption of information and communication technologies and drives an effective government that inserts Mexico in the information and knowledge society, in turn, enabling the development of strategic sectors in the country through the implementation of an economic promotion policy. The National Digital Strategy, therefore, embodies the action plan that the Mexican government will implement over the next few years with five objectives related to the national goals proposed in the NDP: governmental transformation, universal and effective health care, quality education, digital economy, and public safety. The fundamental purpose of the strategy is to achieve a digital Mexico in which the adoption and use of technologies maximizes its economic and social impact to enhance the quality of life for all.

agents, prior declaration of the regulatory body. 3. Strengthening of the institutional framework. The Federal Telecommunications Institute and the Federal Commission of Economic Competition are created as autonomous constitutional bodies. In addition, to ensure the rights of the economic actors, courts are created to deal specifically with matters regarding telecommunications, broadcasting, and economic competition. 4. Promotion of competition. Foreign direct investment will be allowed up to 100% in telecommunications and satellite communications. In addition, up to 49% is authorized in broadcasting, providing there is reciprocity in the investor’s home country. Broadcasters are obligated to allow the free and nondiscriminatory retransmission of their signals to subscription television compa-

nies. In turn, broadcasters will have the right for their signals to be transmitted at no cost and non-discriminately by subscription television companies.

México conectado México conectado (Mexico Connected) is a Mexican government project that helps to ensure the constitutional right of access to bandwidth Internet service (sixth constitutional article). To achieve that objective, México conectado promotes the deployment of telecommunications networks that provide connectivity in public places such as schools, health centers, libraries, community centers, and parks, at federal, state and municipal level.

5. Establishment of a universal digital inclusion policy and a national digital agenda. The federal executive will be responsible for this policy, which will encompass infrastructure, accessibility, connectivity, information and communication technologies, and digital abilities. The aim is for at least 70% of homes and 85% of micro, small and medium-sized companies to have the speed to download information over the Internet, in conformity with international standards.

Federal Programs and Flagship Projects Prosoft The Prosoft public policy, created by the SE in 2002, promotes the conditions for our country to have an internationally competitive IT services sector and ensure its long-term growth. The Prosoft fund was created as a public policy-enabling tool whose purpose is to support investment and the development of IT projects in conjunction with state and private in-

dustry funds. Prosoft has generated an economic spillover of more than sixteen billion pesos by supporting more than three thousand projects. TechBA The program, created and driven by the SE and the Mexico-United States Science Foundation as a business incubator, offers a variety of support programs (financial, consultancy, and operational) to Mexican companies. The aim is to boost their growth and ready them for exporting. MexicoIT This program was created by the CANIETI and backed by the ME through Prosoft. The Mexico IT: Always Near your Business campaign was launched in May 2006 in conjunction with the IT industry to strengthen Mexico’s image as a global IT services provider. In its first stage, the campaign covers the North American market. In order to reinforce the message, the website www.mexico-it. com was launched along with a contact center to follow up on business opportunities in the United States originating from presence in events and specialized media. MexicoFIRST The main objective of this initiative backed by the ME and the World Bank is the generation of human capital to strengthen the workforce, both in number and quality, to further the development and competitiveness of Mexican companies and attract foreign investment from those seeking Mexico as a

6. Push for greater infrastructure coverage. To this end, a national, broadband, fiber optic core network will be deployed and a wholesale shared access, wireless network in the 700 MHz radio spectrum band.

March 2015

México conectado will take bandwidth Internet to public places all over the country. To achieve this, each state follows a five-stage process: installation of the state coordination committee, planning, call for tender, implementation, and operation.

March 2015

Negocios ProMéxico | Cover Feature

world-class player. MexicoFIRST aims to achieve sixty thousand certifications in the first five years; by 2012 (its fourth year) it had already obtained an annual average of around eighteen thousand certifications, 50% more than initially foreseen. Eighty percent of those who take the courses to obtain a certification are successful. The New Vision of the IT Sector As a result of the transverse impact of the IT sector, in 2002 the federal government implemented a public policy that leverages the enormous opportunities in the sector, both in the international and domestic markets, to take Mexico towards a knowledge-based economy. The Prosoft public policy has helped to strengthen the pillars of quality and human capital development in order to potentiate the sector. During 2014, the Sectoral Agenda for the Development of Information Technologies in Mexico 2014-2024—known as Prosoft 3.0—was launched to trigger the digital ICT market as a transversal sector and position Mexico as a global player in IT services, with initiatives and actions that are a high priority on the national agenda. Mexico’s IT sector has immense opportunities to grow, impact the internal market, and position as a global IT services provider. Prosoft 3.0 describes how we see the IT sector in Mexico in the next ten years, what we seek to achieve with the initiative and how we want to measure it.

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Vision 2024

Goals 2024

Become a global player in exports

Second exporter country (initially the third).

Become an outsourcing destination

Third IT outsourcing destination (initially the sixth). In 2014 we were already the fourth.

Have a larger scale of companies and sales

Fourfold increase in the IT market value (initially at 14.4 billion USD). In 2014 the value was 20.7 billion.

Expand the density of IT use

Third in LATAM in terms of business IT use (initially the fifth).

Have certified development centers with the highest quality

One thousand quality centers (initially 527). In 2014 there were 639.

Facilitate close ties with other sectors

Approach fifteen sectors.

Have talent of excellence readily accessible

90% of talent demand covered (initially 50%).

Facilitate innovation with and in IT

50% of IT companies innovate (initially 9.4%).

Higher added value in the sector

25% of added value in services (today it is 9.4%).

Maintain tight links with academia

30% in linked projects (initially 5%).

Have Access to entrepreneurial capital and funding

50% of companies get credits (initially 23%).

Have differentiated specialization

Five IT global poles in the country (initially we had no global poles).

Maintain a tight collaboration in the ecosystem

Annual strategic planning.

Have a regulatory framework that is at the avant-garde

Leader in LATAM in IT-related laws (initially the fifth).

ProMéxico, in line with the Development Plan, the National Digital Agenda, and PROSOFT 3.0, has defined its strategy as “…positioning Mexico as the second biggest exporter of high value-added ICT services through a developed base of local suppliers and converting the country into the third major ICT outsourcing destination and assisting in the development of regional poles of competitiveness.” Internet of Things Digital technologies are among the most important drivers of the economy in a globalized world; they are the main driver of productivity and growth, they transform the world. Today, twenty-five billion objects are connected to the Internet, a figure that will rise to an estimated fifty billion by 2020.

March 2015

Cover Feature | Negocios ProMéxico

The Internet of Things (IoT) is presented as one of the sectors with highest potential and strategic value, both for Mexico and the rest of Latin America. The IoT is an innovative concept based on automatic communication with human intervention, via the Web, between physical objects and, eventually, abstract entities. In device-to-device communication, the IoT concept contemplates objects, protocols, programming, digital applications, chip design, and technology with vast capabilities; it opens a universe of new possibilities for the development of an industry with significant benefits for the economy, as well as an entire package for the attraction of young talent, entrepreneurs, small and medium-sized businesses and liaison with digital ecosystems. The Internet of Things is the first real Internet evolution; it is the technology leap that creates revolutionary applications with the potential to exponentially enhance the way people live, learn, work, and have fun; it emerges when there are more objects than people connected to the Internet and there is real communication between smart objects connected to the Internet through a mobile device. It also enables the collection of data and information to convert into knowledge.

March 2015

For Mexico, new technologies are an opportunity for economic expansion in non-traditional sectors, due to their high international performance based primarily on talent and the development of digital high technology. The use of IoT applications has countless benefits. The cross-cutting nature of the sector opens many opportunities for development in the country, especially in sectors such as automotive, aerospace, medical, agricultural, and energy. The sector also influences the development of smart cities that will improve quality of life and economic growth with the use of technologies related to these applications. The infrastructure will push Mexico to the leading edge of digital innovation, with connected communities and smart solutions in these sectors which, by 2020, will benefit almost half of the world economy with fifty billion objects connected, contributing to a sustainable energy future. In order to develop an Internet of Things national strategy, ProMéxico, the ME, the World Bank, and CANIETI, together with experts from the triple helix, used a road map approach to develop the strategic milestones and projects that will detonate the industry.

Strategic milestones that have been defined to position Mexico: 1. Being the benchmark for IoT applications in Latin America, in design, advanced manufacturing, product development, with a focus on generating new business. 2. Being one of the five leading countries in digital solutions and Big Data management in 2025. Some projects that include the steps and activities to follow:

· Develop new specialized technology applications that enable new business. · Create technology laboratories to conduct pre-sale product testing. · Obtain economic resources for the de·

velopment of new projects that promote business focused on new technologies. Create a technology platform that enables the exchange of knowledge and new business.

With such high growth potential, there is a clear opportunity for Mexican talent to develop IoT applications and solutions. N * ICT specialist, ProMéxico