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U.S. Commercial Service U.S. Embassy MEXICO

U.S. Commercial Service U.S. Embassy MEXICO. IP TELEPHONY: THE MEXICAN MARKET. Todd Avery Commercial Attaché U.S. Embassy – Mexico City. Role of New Technologies. Facilitates global trade, competitiveness, and economic development Consolidation and convergence bring new business models

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U.S. Commercial Service U.S. Embassy MEXICO

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  1. U.S. Commercial ServiceU.S. EmbassyMEXICO IP TELEPHONY: THE MEXICAN MARKET Todd Avery Commercial Attaché U.S. Embassy – Mexico City

  2. Role of New Technologies • Facilitates global trade, competitiveness, and economic development • Consolidation and convergence bring new business models • Direct competition for last mile access • Increased digital coverage in underprivileged rural areas • Convergence increases the benefits of Information and Communication Technologies to all

  3. New Technology Trends • Broadband, Wireless and VoIP technologies • Value Added Services • Focus on SME’s • Convergence and mobility • Business opportunities: • Telecom equipment: Wireless, VoIP, security devices • Content: Enterprise applications, Entertainment • Networking: Unified messaging, Collaboration, Multimedia, Conferencing, Telemetrics, and broadcasting

  4. VoIP Around the World $10USD million earmarked for Interlink’s VoIP project, April 11, 2005 US-based operator Interlink Global is undertaking a USD10 million regional IP telephony upgrade project in Chile and Venezuela, and says it hopes to spread its VoIP services to the whole of Latin America. The project will involve rolling out corporate VoIP services similar to those that it currently offers in the US, including Wi-Fi access. Interlink Global was created when Interlink (Chile) launched services aimed at business users in partnership with an American start-up company last month. It recently introduced services in Venezuala after acquiring a local operator and currently offers pre-paid cards for conventional local, long-distance and international telephony. http://www.telegeography.com/cu/article.php?article_id=6686 CHILE VENEZUELA

  5. USA USA VoIP Around the World FCC acts to end VoIP blocking The Federal Communications Commission (FCC) has fined North Carolina-based broadband provider Madison River Communications USD15,000 for blocking VoIP calls. A consent decree by the FCC prevents Madison from blocking VoIP calls for 30 months. VoIP provider Vonage has confirmed that it complained to the FCC about Madison River last month, leading to the FCC’s investigation. Cable companiess report strong VoIP takeup, April 12, 2005 According to a report by the Financial Times, New York cable company, Cablevision, is adding 1,000 telephony customers a day, reporting 350,000 in total at mid-March. Time Warner Cable, meanwhile said that at the end of 2004 it had 220,000 VoIP customers, adding 10,000 per week. http://www.telegeography.com/cu/article.php?article_id=6704

  6. VoIP Perceptions in Mexico • Market sees good projected growth for 2005 – 2006 • Technologydevelopments in IP and Broadband provide for Convergence: voice, data and video; in time it will incorporate broadcasting services as well • Userssee IP based solutions as: • Mature • Secure • Redundant • Reliable • Operatorsare offering integrated solutions: • Infrastructure • Consultancy • Administration

  7. Market Trends • The development of new technologies, VoIP, will not stop • Convergence will lead technology innovation based on wireless and IP Protocol solutions • Narrowband maintains a market niche • Older users, less savvy users, occasional users • CATV: will they be able to offer voice services directly? • This could promote a more competitive market • Incumbent dominates Broadband deployment through copper cable, ADSL, and rents its lines to other operators • ADSL will outgrow cable modems 3 to 1 by 2006(Morgan Stanley)

  8. Source: Select How Fast is ADSL Growing in Mexico?

  9. Source: Select Voice Equipment in Mexico • IP PBX systems growing in demand • Participation moved from 6% in 2002 to 49% in 2004 • Hybrid systems also with strong growth, from 8% in 2002 to 21% in 2004 • Those users most likely will eventually move to complete IP systems in the future

  10. Challenges Ahead • The development and implementation of new technologies in the fixed and wireless telephone services, and broadband Internet access can help boost competitiveness and productivity • Regulation that considers convergence and competition will support other needed reforms such as in energy, fiscal and labor issues • Cheaper prices in telecommunication services through competition • Global competition forces the US and Mexico to strengthen their trade and other relationships between each other • North America needs to move away from competing through cheap labor, and integrate within the New Economy environment

  11. US – Mexico Cooperation • NAFTA • Greatest opportunity for economic growth • U.S.-Mexico Trade increased 186% from USD 88 billion in 1993 to USD 252 billion in 2003 • Elimination of Barriers in Key Sectors • Partnership for Prosperity (P4P) • Security and Prosperity Partnership (SPP)

  12. Partnership For ProsperityP4P • Goals: • Greater Economic Prosperity • More Purchasing Power • Decreased Migration • Tools: • Technology and Innovation Working Group • CONACYT and CCE • US Embassy and AMCHAM • Increase use of ICTs for PyMEs • Increase investment in infrastructure for commerce

  13. Security and Prosperity PartnershipSPP – Mexico, Canada, and U.S. • Goals: • Establish a common approach to security • Enhance competitive position of North American industries • Provide greater economic opportunity for all • Improve quality of life • E-commerce and ICT Working Group • Reduce online business costs • Encourage private sector self-regulation • Support a transparent, predictable, just and nondiscriminatory legislative and regulatory regime • Eliminate redundant testing and certification requirements

  14. Security and Prosperity PartnershipSPP – Mexico, Canada, and U.S. • E-commerce and ICT Working Group • Raise ICT penetration levels • Improve the low of e-commerce • Eliminate redundant testing fees • Upgrade online transactional security • Prevent the creation of artificial barriers.

  15. U. S. Commercial Service • An Agency of the U.S. Department of Commerce • Mission is primarily to help small and medium size, export-ready companies to enter new markets, and to protect U.S. Business interests abroad • Network of 100+ offices in the U.S. and 160 world-wide

  16. Services for Mexican Firms • International Buyer Program • Commercial News USA • Business Service Provider Program

  17. US Commercial Service Events Supercomm 2005 • Delegation of Mexican entrepreneurs to assist at the largest IT and telecom trade fair in the US. • Focused meetings • Hotel and air discounts • Workshops Contact: • juancarlos.prieto@mail.doc.gov • https://www.buyusa.gov/mexico/es/supercomm.html

  18. U.S. Commercial ServiceU.S. EmbassyMEXICO IP TELEPHONY: THE MEXICAN MARKET THANK YOU! KAREN L. ZENS MINISTER COUNSELOR FOR COMMERCIAL AFFAIRS May 3, 2005

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