Mexico's telecom sector forecast to grow slower than GDP

Mexico's telecom sector is expected to grow 1% in 2014, half the forecast rate of GDP growth, due to a slowdown in the Mexican economy and uncertainty surrounding the telecoms reform introduced last year, according to think tank the Competitive Intelligence Unit (CIU).

Speaking om a panel at the BNamericas Mexico Telecom Summit taking place in Mexico City from December 3-4,CIU president Ernesto Piedras said the growth figure is unprecedented, adding "The sector usually grows at a faster rate than the country's GDP."

"The reforms put a halt to investment, which has translated into stagnation of the sector," Piedras said.

However, the expectation is that investment will pick up next year, with the entry of foreign players such as AT&T. Piedras added that tenders for public TV channel licenses and spectrum frequencies will also push the market forward.