Background on the Telecommunications Industry in Mexico
The telecommunications industry in Mexico is a significant contributor to the country’s economy, generating substantial revenue through fixed and mobile services, cable or satellite operations, and both wholesale and retail segments. In 2024, this industry factured approximately 643,093.93 million Mexican pesos (around 32,600 million USD annually), placing Mexico’s telecommunications market close to Brazil, where the local industry generates around 35,000 million USD annually.
Income Growth in 2024
According to company reports, the Mexican telecommunications sector’s income increased by around 350 million USD between 2023 and 2024. This growth represented a 0.98% increase compared to the income level in 2023. However, during two consecutive quarters when Mexico’s GDP performance was weak, the telecommunications industry in Mexico also saw a decrease in funds captured through its operations.
Quarterly Performance
In the last quarter of 2024, the telecommunications industry in Mexico generated around 8,675 million USD from providing fixed and mobile services, cable or satellite operations, and wholesale and retail segments. This was the best-performing quarter for the industry that year.
- Q1 2024: 8,205 million USD
- Q2 2024: 7,674 million USD
- Q3 2024: 8,016 million USD
- Q4 2024: 8,675 million USD
Impact of Slow GDP Growth on Telecommunications Income
The slow GDP growth in Mexico during certain quarters of 2024 coincided with a decrease in telecommunications industry income. This situation can be explained by the fact that, during those periods, Mexican consumers valued purchasing fewer telecommunications services due to rising inflation rates.
- Mexico’s annual inflation rate was 4.21% in 2024.
- The interannual growth of the Mexican economy was 1.0% in Q2 2024 and 0.2% compared to Q1 2024.
- Inflation rates during those periods were 6.46% in Q2 and 10.36% in Q3.
Key Questions and Answers
- Q: What is the annual revenue of Mexico’s telecommunications sector?
A: Approximately 32,600 million USD annually. - Q: How much did the telecommunications sector’s income grow between 2023 and 2024 in Mexico?
A: Around 350 million USD. - Q: What was the best-performing quarter for Mexico’s telecommunications industry in 2024?
A: The fourth quarter, with approximately 8,675 million USD generated. - Q: How did Mexico’s slow GDP growth affect the telecommunications sector’s income?
A: During periods of weak GDP growth and high inflation, Mexican consumers tended to purchase fewer telecommunications services.
