- Ready to connect into the electronic revolution -

High-speed communication systems are an essential stepping stone for the development of Mexico’s vast potential, helping expand the country’s market and reinforcing its democracy


he logistics involved in making e-Mexico a reality are daunting. In each of more than 2,400 municipalities through the country the government is creating the equivalent of internet cafes for the benefit of ordinary working-class citizens.
In a country of 763,944 square miles – eight times the size of Britain – the distances involved mean that satellite communications are key to the scheme. Many of these internet centres will be located in schools, libraries and other public buildings and the target is to connect 10,000 of them by 2007.


Jorge Alvarez Hoth
‘At least 85-90 per cent of the population will have internet access’

The man charged with overseeing this complex task is Jorge Alvarez Hoth, the Under-Secretary of Communications. The first stage of the scheme is well under way and Mr Alvarez explains why e-Mexico is so important for the country’s 100 million people. “In Mexico it would not be possible to connect every home to the internet for many years for the simple reason that many cannot afford it,” he says.

“About half our population would have difficulties in finding the entry price of £250 to £300 and the continuing charge of around £25 a month. So what we’re going to do is create a community base in all the 2,445 municipalities with at least one digital community centre in the first phase of the programme. With 10,000 centres, at least 85-90 per cent of the population will have access to high-speed communications.”

The government has set up a social fund to deliver educational programmes, in particular to improve literacy rates among the rural communities. The vast bulk of the funding, however, will come from private investors. There are many players involved in the e-Mexico scheme, from government departments and agencies, banks and the private sector. Among the most prominent is Telmex, the largest telecommunications company in Latin America.

The e-Mexico project has firm foundations and a well-structured telecommunications base

Telmex, formerly a government monopoly, is still the dominant player in the telecoms market, operating more than 90 per cent of the fixed-line network. The company has rapidly been extending its network and has already connected a number of internet centres in schools which can also be used by the local community after school hours.


Jaime Chico Pardo
‘We are fully integrating our strategy with e-Mexico’

Jaime Chico Pardo, Chief Executive of Telmex, says: “President Fox’s plan is very much in line with our thinking. We are fully integrating our strategy with e-Mexico. In the past, we had an aid programme to provide voice services to communities. We are doing the same thing today, taking the internet cafe concept to these centres.”

Telmex has also devised several of its own schemes to help more people gain access to the internet. The company offers a pre-paid card for fixed lines or the whole package, from computer to connection, on a pay-back basis.

“This makes it more affordable,” says Mr Chico Pardo. “In fact, today, I believe we are selling most of the PCs in Mexico. One scheme that we have launched for a different market at a lower price, comes complete with the internet at $30 a month over a three-year period.”

Customers are looking for entire telecoms solutions, not just internet connectivity

Mr Chico Pardo is also very interested in the content that will be delivered by the nationwide electronic revolution. “Connectivity alone is not enough,” he says. “We need to bring entire solutions to customers, not just the internet. We have been working with small and medium-sized businesses for some time in this respect.

“I think the e-Mexico project has solid foundations and is very well-structured. What is important to point out is the level of private sector participation.
“We have to take Mexico into the new century with the right tools to be competitive. To speed up the process, the government and the telecoms industry must continue to move in the same strategic direction, and that is what e-Mexico is doing in integrating this huge project.”

Satmex, Latin America’s leading satellite communications company in which the government has a 25 per cent stake, is deeply involved in the e-Mexico project. With three satellites already in operation covering a region stretching from the southern tip of South America to North America and a fourth being launched this year, the company is poised to carry even more traffic.

Lauro Gonzalez Moreno, Executive President of Satmex, says the company feels it has an enormous responsibility to the people of Mexico. “Satmex immediately responded when the e-Mexico initiative was being devised, because it was obvious that satellite communications would be needed,” she says. “A lot of trust is placed in us, because Mexico’s strategic services depend on our satellites, as will e-health and e-education. We’re very excited to be contributing to the project.”

Adrian Vargas Guadajardo, President of the MVS Group, which has interests in television, radio, film production and the internet, is another sector leader who is backing the e-Mexico project. “We see e-Mexico as a means to develop the country,” he says. “It will not only help to expand the market, but it has a social element too. It will reinforce democracy.”

The country has a very young population and many are avid users of new technology

Meanwhile, the number of mobile telephones has already overtaken fixed lines, and Carlos Garcia Moreno, Director of Finance and Administration at America Movil, predicts a further massive expansion following the launch last year of the so-called 2.5 Generation GSM (global system for mobile communications) network in Mexico. The new GSM service permits the transmission of images as well as voice.

America Movil, the hugely successful spin-off from Telmex, is now Latin America’s largest cellular operator, with subsidiaries in Guatemala, Ecuador, Brazil, Columbia, Argentina and the US, as well as Mexico. Its subsidiary Telcel is the largest mobile company in Mexico, with more than 19 million subscribers.
“Mexico has a very young population; about one and a half million 18-year-olds enter the labour market each year. They are very keen on new technology, so the potential is very big,” adds Dr Moreno.


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