INSIGHT
15 YEARS GROWING IN MEXICO’S RISING TELECOM INDUSTRY CARLOS MORALES CEO of Telefónica Movistar México
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It has been 15 years since the Spanish firm Telefónica Movistar
specific industries. The IoT program will be delivered to
arrived to the Mexican telecommunications market. Back then,
industries such as energy, healthcare and banking. “Telefónica
Mexico was waking up to its potential and trying to figure
is helping its partners increase their productivity and efficiency
out how to provide connectivity for its massive population.
by offering integrated digital solutions that optimize their
Throughout this time, the firm has positioned itself as one of
processes and reduce their investment budgets.”
the top telecommunications companies in Mexico, while the telecoms market has been growing along with a population
According to GMSA, Mexico is the second-largest mobile
that demands connectivity as a priority.
communication market in Latin America and one of the Top 15 in the world. Telefónica Movistar sees great potential in the
The request for internet and communication access is not just
Mexican market due to the size of the young population and
a priority for the Mexican market. “There is exponential global
the creation and arrival of new businesses. According to INEGI,
growth in connectivity, with 7.4 billion subscribers to personal
70 percent of internet users are 35 years old or younger, and
internet for mobile devices and 3.2 billion daily internet users,”
almost 40 percent of homes have an internet connection.
says Carlos Morales, CEO of Telefónica Movistar Mexico.
“Our present world demands permanent connectivity and this
“Today, we are experiencing the digitalization of society
digital revolution pushes us to work harder on providing better
through changes in products, consumer habits and different channels of communication. Everything is focused on data consumption.” The growth of digital society is demanding the creation of new business models. Movistar’s model, Elegimos todo, integrates three value propositions: “Unique and simple products, excellent connectivity through LTE services and the company’s core values that provide the best experience and client satisfaction.” Morales says Telefónica trusts Mexico’s potential. The company will continue working on its growth plans with investments above 13 percent of its annual income;
“
standards and services every day,” says Morales.
One of the challenges includes creating a more cost-effective spectrum to meet the growing demand for digital services in Mexico” Telefónica is also focused on growing its customer service. In
so far, the company has an accumulated investment of US$13
2017, it will be opening more than 100 stores in cities such as
billion. Its growth plan is focused on the expansion of its
Cuernavaca, Guadalajara, Monterrey, Tijuana, Leon, Puebla,
network, which has more than 10,500 radio bases. Telefónica
Baja California and Merida. “At Telefónica Movistar, we offer
has also invested US$50 million in its Data Center in Parque
our clients a different experience. We are proud to be the
Tecnológico de Ixtlahuaca. “We are a key player in the market,
mobile telecommunication company with the fewest claims
with 26.6 million clients and coverage in 90 percent of the
from our customers,” says Morales.
urban population,” says Morales. Despite the company’s success, market obstacles have Telefónica is also promoting its B2B portfolio of integrated
restrained the company’s development. “From the beginning,
digital solutions to help Mexican companies increase
one of our priorities was the definition of a competitive
their productivity. Morales says its ideal portfolio includes
environment for all players in the telecommunications sector.
cloud solutions for storage, hosting and unification of
Around 15 years later, we still face significant challenges from a
communications, security solutions for management of
regulatory point of view,” says Morales. “One of the challenges
devices, cybersecurity and threat detection, connectivity
includes creating a more cost-effective spectrum to meet the
solutions like IoT and the development of applications for
growing demand for digital services in Mexico.
