iPhone in Mexico?

I’ve posted a follow up article, that takes in to account everything we’ve learned about Apple, the iPhone and Mexico since this post was published last June (’07). I’m asking iPhone in Mexico users to give us a little feedback about their experience. The new article: iPhone in Mexico: A Follow Up. I’ve turned off commenting on this post.

Ok, so I’ve been doing some noodling into whether the iphone will ever make it to Mexico. My apprehensions start with the iTunes Store, which is currently not available in Mexico. I’m not gonna conjecture on why iTunes still isn’t available here. What is important is that you need an iTunes account to use most of the data features on the iPhone. No account, no dice. My next thought was that Telcel is a GSM network, but it turns out this thought isn’t entirely correct. Telcel actually has dual GSM/Edge systems in place. Hence, if you’re vacationing in Mexico, you can get international voice/data plans from Cingular/AT&T, Verizon and T-Mobile that work on Telcel’s network.

The knife in the iphone-in-mexico coffin is most likely Apple’s deal with AT&T Wireless. Telcel, having a total monopoly on the cellular market in Mexico*, will never bend to Apple getting a slice of subscription fees, conversely Telcel would most likely demand a slice of iTunes booty, for songs downloaded over the phone and it’s network (if/when it’s added as a feature). Mexico is a huge and growing economy, but 99% of the country is still buying the subsidized $40 bottom-of-the-line Nokias. I rarely ever see Blackberrys here, they aren’t even marketed or displayed within Telcel’s stores and the Hip-Top/Sidekick is nowhere to be seen.

If there is a silver lining it’s this: iPods may be a total luxury item here, but I still see them everywhere. They are the ultimate in status symbol for mexican teenagers. The Motorola RAZR was also a huge hit (although it was subsidized), it was responsible for everyone and their mother’s mother re-upping their 2 year contract with Telcel. Telcel’s monopoly (and robust network) make people sign that contract without even blinking. Who ya gonna go to, if there’s only one player in town? I learned this the hard way: when I bought my first phone, down here, I payed full price without a contract and then found out that there is no other provider I could switch to even if I wanted.

So, to sum it up: the tech is here, iTunes Store is not, Telcel is a huge obstacle and I’m not quite sure if the market is ready for the iPhone. It may make one helluva splash with the fresas and the business community, but I don’t know if there is a large enough market to interest Apple. If I had a Magic 8 Ball, I’m sure it would say something like: “Dude, you’re SOL. Keep dreaming.”

Until the iPhone gets here I’ll keep dreaming, in the meantime, I’m going to NYC next week and I can’t wait to get my grubby mits all over one at the 5th Ave Apple store.

Update: I stumbled upon this post at mobilmag.com, in the comments someone writes, in spanish, that he hears from a reliable source, that the iPhone is coming to Mexico in September and Telcel will carry it. I am dubious, but I hold out a child-like hope that it’s true. I believe everything I read on the internets.

* There are a few scrappy cellular upstarts including Movistar, iUsacel and Nextel, but all of them use some portion of Telcel’s network, so in essence they are MVNO networks and their coverage is dismal in most areas outside of the major cities (including mine).

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Comments:

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Sander said,

June 28, 2007 @ 9:49 am

Hello Ed.
Just stumbled upon your site after googling for “iphone mexico”!
Thanks for that info!

Yeah, I’ve been wanting something portable that could access the web, and have been leaning towards the Linux-based Nokia n800 “internet tablet” since it just connects to any wi-fi network, and is supposedly shortly including Skype, of which I’m a big fan. But I’m curious about the Iphone too, since it is web-enabled, but of course I’m really wondering about whether it would work in Mexico.

Don’t have time to really check out your blog just now–we’re leaving tomorrow a.m. for San Diego for about 6 weeks or so. Normally we’re in San Miguel de Allende–where are you?

I used to run a forum here–vivasma, but I cancelled it due to a lack of interest (and competition from a Yahoo-based group).

Okay then, thanks again for the info!

Cheers,

Sander

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Leo said,

July 1, 2007 @ 12:01 pm

Hi there, well, of course without the iTunes Store in Mexico we’re dead on the water, since Apple would have to find a way to make the register process work without iTunes… feasible? you bet, likely? you bet not, the iPhone will go first to those countries which already have an iTunes Store, and AFTER them, Apple will start considering whether it’s worth the hassle or not.

On the other hand, iPhones bought in USA should work in Mexico without problems, of course you won’t have the push voicemail stuff and other niceties, but the phone and browser should work.

One last thing, Movistar is promoting it has reached it’s first 10 million users in Mexico, with Telcel having some 30 million, i thing there’s a fair chance that Telefonica Movistar would use their strong european position to get the iPhone into Mexico, and it would be nice that Telcel gets some competition, since currently all plans and rates are far more expensive than the ones in USA or Europe.

Sander, if you go to an AT&T store they could confirm if the iPhones work down here, and, just to mention it, i’m here in Queretaro, so i know Sn Miguel pretty well!

Best regards

Leo

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Octavio Longoria said,

July 2, 2007 @ 12:55 pm

dude!!!
hahahaha LMFAO!!!
It may make one helluva splash with the fresas and the business community

FRESAS!! i’m a fresa i guess and i know what people think about us
ok, i have money my parents support me, and yeah i buy every new gadget that comes out.

but that was just so funny to read.
see you all later

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Jose said,

July 2, 2007 @ 9:43 pm

According to some article I read at CNN, iPhone is coming to Europe in the 4th quarter 2007, and to Asia and Mexico in 2008.

Actually Blackberrys are popular amongst some businessman and some companies use them, but still are fairly unknown for the average guy. Telcel has an interesting related site: http://www.datumtelcel.com/default.html
In the last 2 years I’ve seen an increased interest in expensive cellphones, maybe not smartphones, but at least more people are buying a good multimedia device (especially young adults) and I’d say that ~5% of cellphone users own an expensive one.

Ok, lets say we get the same iPhone release as the current US version to Mexico. Telcel or Movistar would need to actually offer a special plan with unlimited data and a fair amount of included minutes, because we have to remember that a big part of the iPhone functionalities involve Internet. Both companies offer EDGE, but the current data plans are pretty expensive. If we actually get a 3G iPhone (my guess is that we are going to get an improved iPhone in Europe, Asia and Mexico), we might be able to use the 3G services/speed, because movistar is currently testing 3G in Monterrey, and according to 3G Americas, Telcel is launching 3G in December 2007.

I think we could definitely benefit if Movistar gets the iPhone first, especially because in 2008 we are going to be able to use our same cellphone number in any company according to new number-portability rules to improve fair competition. So competition would get pretty interesting. It’s good to see that movistar reached 10 million users and is stealing some share market to Telcel, but lets remember that still Telcel has 40+million users and growing at a pretty good rate.

I would like an iTunes Mexican Store, however I’m not really interested in DRM-protected mp3s, but I’ve discovered some great often-cheaper legal alternatives without DRM protection.

I hope that my English was understandable :D Greetings

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Emilio said,

July 11, 2007 @ 1:45 pm

Hahaha, the Fresas… You’ve learnt well.

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Yorch said,

July 17, 2007 @ 12:02 am

Nice post but some things are incorrect.

Telcel is for sure the major cellphone provider in Mexico with 53 million clients. But is not the only one. Movistar (which has its own GSM/EDGE network and has just set a 3G network in Monterrey)has 10 million clients. Now there come Iusacell and Unefon who have 2.5 million clients both of them and have their own CDMA network (which is uncompatible with Telcel)

So I totally agree with Jose. There will be an interesting fight between Mexican Telcel and Spanish Movistar to handle the iPhone in Mexico and I bet my soul that we’re going to get the European 3G version of the iPhone next year.

Remember that Latin America is the fastest grwoing cellphone market in the world with Mexico leading.

P.S. Nothing about 99% buying under $40 cellphones. The most sold cellphone in Mexico last year was the LG Chocolate. Remember that there’s a Nokia Flagship Store in Mexico City where Nokia sells Vertu. There are only 5 more Nokia Stores in the world: New York, Chicago, Hong Kong, Helsinki and Moscow.

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Ed Fladung said,

July 17, 2007 @ 9:33 am

Thanks for your comments guys.

Yorch, I want to comment on yours. I have no idea how the “iphone in mexico” thing will shake out. But if we are talking details: if Telcel outnumbers Movistar in subscribers over 5 to 1, it would make no sense for Apple to sign up with Movistar. The downside to Telcel having a near monopoly is that Apple won’t be able to get the same points they got with AT&T. So going with Movistar would probably give them the contract points they need but they’d be stuck with 1/5 of the market. Movistar may be testing 3G in Monterrey, but there’s no way they can roll the new network out to the rest of Mexico in a year’s time. Movistar’s strategy has been and still is aimed at the larger cities. For someone like me, who is not in a major city, Movistar isn’t an option and won’t be for some time.

Also, as for paying for cellphones, how many people actually bought the LG Chocolate? i’d say maybe 10-20 percent. Most people got the phone for free or near free, for renewing their contracts or signing up for a new contract, as stated above.

I dig your blog. very nice.

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Luis N said,

July 24, 2007 @ 11:31 pm

Having one of the iPhones here in Mexico, I can tell you the phone does not work not even roaming. Probably because I activated in an area not covered by AT&T. I just saw a US activated iPhone and roaming works, but not in mine. All other applications work fine. I can browse, email, etc. using WiFi and all iPod functions work great. Maybe when Telcel or Movistar offer their service I will be able to use the phone too.

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Emilio 93 said,

August 1, 2007 @ 9:40 pm

You are right many people in here still think that gadgets must be like 40$ and that mus stop i mean i have a wii a palm treo wich is the competition of a blackberry a Psp and an ipo nano and i have a nokia 6103b beacause if i carry the palm with people at school will rob it.. beacause they don’t want to pay money for a gadget and thats not fair i mean there are people that know what the iphone can do and thats why they want it i mean people in her only use the psp for playing they don’t even know it can play music its so unfair and telcel plans are like too crapy and instead everyone has the ”amigo” with the 100$ card LOl

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tucky said,

August 2, 2007 @ 12:52 pm

I read somewhere that the iPhone will be available at the 2Q on 2008, or somewhere around that. as for who’s gonna carry it my bet is on telcel, which to be honest sucks, I live in a fairly 2 “big” city and use a blackberry 8100, I’m seeing more everyday but they still not that common, and people who have them, don’t even know half of their potential, so the iPhone is mostly expect it as an iPod with phone capability whoever gets it I’m pretty sure it would boost up their sales, if Movistar gets it it would help people notice the fact that movistar is way better than telcel when it comes to customer service and area coverage, yup it is better. to be honest I haven’t pay my cellphone usage in wuite a while, my company have give it to me as a part of my contract, last company I was with had a contract with Movistar, whe use to have communication within users in Culiacan-Tijuana-Guadalajara and the bills where around $500 pesos($50 US) and this where long ass chats, as for coverage I use to travel the whole northern area of Mexico(Baja California, Sonora and Sinaloa) and once have the same brand cellphone as my brother, but he was with telcel and he kept asking for my phone ’cause he had no service. same brand phone, exact same model diferent carrier. the iTunes store is not in México they should be working on it as the iPhone is supposed to be activated with that, I hope it gets soon, I been wanting that cool looking ms pac man game for my iPod for quite a while. I don’t know how popular it would be, if you check out mercado libre you can see everybody asking for rebates or exchanges, I don’t think iTunes would be cutting such deals. my thought? I believe iTunes would be the activating method for the iPhone in México and that’s that. no iTunes store for mexico in the near future. just my 0.02 cents

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Ivan said,

August 15, 2007 @ 2:01 am

So please!!! Someone let me know if the iphone would work in México if I buy one in Texas and cross it over the border. I have read both, that it would work and that it won´t.
Thanks!

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Travesa said,

August 15, 2007 @ 4:38 pm

So the bottom story is this: If you buy an iphone and bring it to Mexico, probably the phone will work, if you pay for the internet access, the internet will work, and if you have iTunes, then the iPod will work… Probably… But the real cost of the services that you need will be just too much, I believe. I really hope we can have, and not too far into the future (please), the opportunity to really use smartphones here. But i do think we need to wait more than we want to, for many of the features of some-what regular phones (not subsidized) do not work, no matter what plan you pay with your phone company…

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Jeremy said,

September 5, 2007 @ 10:08 pm

Hey guys, I am in Mexico a lot on business and I am thinking about bringing some phones down that are unlocked that will work with any GSM network. Would anyone really be interested in that?

Thanks
Jeremy

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Santiago Maldonado said,

September 25, 2007 @ 12:47 am

Something to think about: Carlos Slim owns over 2% of apple shares (one of apples heaviest share holders) He is also the owner of Telcel. In Mexico i have seen people buying 1000 USD cell phones and using them with 10 USD prepaid phone cards (and not a few, but a lot), just because they want to have a “nice” phone even if it doesn’t do anything except produce tones and take pictures. I hae seen people wih 1000 USD phones and 3,000 USD cars. or with 30,000 dollar houses but 70,000 dollar cars, it is the way things are in México.

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Francisco said,

January 1, 2008 @ 9:58 pm

well personally i have and iphone and i works great here the internet cost can get pretty high if you do use it but you have the choice to use the wifi connection. i dont think that ppl here buy $40 cell phones all of my uncles have smart phones and my other cell is the Nokia N95 witch is carried by Telcel. Also a new Apple store was opened in Mexico Fall 2007 which mean that most likely they will be launching an Itunes store here. Most likely the iphone will be brought to Mexico mid 2008

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mimi said,

January 28, 2008 @ 1:23 pm

I am an American and I live in mexico, have itunes, an iphone. Lots of people do.Allmy friends have blackberries and I phones. I dont know what the problem is..I had someone put a chip in the phone. I have compter access phones etc..

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mrtnclzd said,

February 16, 2008 @ 3:24 pm

perhaps people u know don’t carry blackberry’s, but I’ve seen them a lot on high executives, most don’t use them anymore than a regular phone.

I’ve been seeing lots of iphones lately. and with all the jailbreaking and unlocking, turbosims and hardware mods, I know it is possible to use one down here.

saludos!

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brozo06 said,

March 7, 2008 @ 3:21 pm

Iphones will most certainly work in Mexico. They will work pretty much on any GSM network with an unlocked iphone. Using ziphone you can unlock jailbreak and activate the iphone without ever having to sign a contract or use itunes. Just google ziphone and you will find it, also there are many websites out there dedicated for the iphone. These websites have information on pretty much anything and everything you need to know about using and modifying your iphone.

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EDDY said,

March 17, 2008 @ 2:24 pm

ok, ok, everybody knows that you can buy an iphone in mexico, it cost 600 dlls (no contract required), it´s unlocked and works with telcel or movistar (you choose the company depending of your sim card), in fact you can find any cellphone here, like chinese clones hiphone, so , many people is buying the iphone everywhere, and its working perfectly. you can find them here, just type “mercadolibre” an go to seccion “telefonia ” and… surprise the ultimate cellphones are here with guarantee, and you can buy them,
remember that in mexico you can find any thing.
ha by the way, the blackberries in mexico are not very popular, most people don´t like it. the coolest things in mexico are now the iphone and nextel network. cheers.

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Arturo said,

March 27, 2008 @ 1:38 pm

Got mine few months ago and it works perfectly. I´ve jailbroken and activated it myself thanks to iNdependence on Mac. But also has received a few mistreatment ever since; several drops (like 6), scratches, and keeps working. Its amazing what Apple has accomplished in such great device. I´ve been all-time Apple fan but this one just blew me away. For those interested, El Universal site (http://www.eluniversal.com.mx/finanzas/63390.html) has posted an article claiming that iPhones will arrive to Mexico in June, with Carlos Slim´s favorite cell carrier. The journalists explained that by calling to an Apple Store they were obviously denied be sent with an iPhone, but in return they offered to wait until June, when oficially lands to aztec territory, supposedly.

We´ll just have to wait if this gets true.

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