Searching for Economic Value in Mexican Rural Communities

9 Pages Posted: 20 Dec 2015

See all articles by Ante Salcedo

Ante Salcedo

Instituto Tecnológico Autónomo de México (ITAM)

Arturo Ávila

Instituto Tecnológico Autónomo de México (ITAM)

Federico Kuhlmann

Instituto Tecnológico Autónomo de México (ITAM)

Date Written: July 13, 2015

Abstract

Evolving information and communications technologies (ICT), along with Mexican regulatory changes, raise expectations to increase ICT population reach. Yet, to bring infrastructure to more than 4,500 rural communities with less than 1,500 residents, remains an enormous challenge for Telecommunications Service Providers (TSP’s). Therefore, two questions are addressed: is there sufficient economic value in rural communities? Is there a sustainable way to capture such value? To address the first question, the economic activity of a typical rural population is analyzed, and the impact from ICT adoption is estimated. Broadband availability leads to optimistic figures, in contrast to traditional models assuming only personal communications services. To answer the second question, a midsized mobile virtual network enabler (MVNE) is proposed to provide turnkey franchise-type business models and assets, for local entrepreneurs to supply information services within their communities, creating sufficient demand for TSP’s to deploy infrastructure. Findings show attractiveness for all stakeholders.

Keywords: MVNO, MVNE, Rural Community, Economic Value, ICT, ICT Economic Impact, Infraestructure deployment

JEL Classification: L96, O18

Suggested Citation

Salcedo, Ante and Ávila, Arturo and Kuhlmann, Federico, Searching for Economic Value in Mexican Rural Communities (July 13, 2015). Proceedings of the 9th CPRLatam Conference, Cancun, July 13-14, 2015. Available at SSRN: https://ssrn.com/abstract=2705629

Ante Salcedo (Contact Author)

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

Arturo Ávila

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

Federico Kuhlmann

Instituto Tecnológico Autónomo de México (ITAM) ( email )

Av. Camino a Sta. Teresa 930
Col. Héroes de Padierna
Mexico City, D.F. 01000, Federal District 01080
Mexico

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