Horacio López
Director General
CTC Telecom
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View from the Top

Round Solutions for Square-shaped Problems

By Gabriela Mastache | Fri, 06/12/2020 - 15:57

Q: What is CTC Telecom’s main strength in the Mexican market?

A: We provide internet, telephone, data center, security and administration services, all at an average price similar to that of our competitors. Though we have a lower budget than larger companies, we strive to keep the development of applications and platforms in-house, which has been our key differentiator. When I started managing the PBX platform in the cloud, I was asked why we did not use the software that other companies had already developed and that we could purchase. The problem with this is that our potential clients become clients of this third-party company instead. We decided to develop our own infrastructure and solutions.

We also realized there are no application suppliers among carrier companies. I did not want to lose control of the application by having to give it to someone else. I would not know if that someone else would treat clients the way we treat them, or if that someone else would have the appropriate attitude toward them. As a result, we believe that one of our main strengths is that we develop our own applications. We believe in making communication between our clients and us easier.

Q: What has been CTC Telecom’s greatest innovation for the sector?

A: More than innovation, the most significant challenge is to implement services where there is no internet coverage. The telecom sector in the country continues to be a monopoly. Elements of the Telecommunications Reform, such as eliminating the fee for long-distance calls, are good at first glance. However, when analyzing the volume of long-distance calls that were made, we realized that not a large percentage of people were benefiting. However, there are still many areas, such as Texcoco and Tlaxcala, where there is no internet coverage. There are even cases of large textile companies located in these areas that cannot get internet coverage. Rather than eliminating the existing dominance, the Telecommunications Reform encouraged it.

So far, we offer coverage in 12 states, with our own infrastructure and a link to Texas, meaning that we already have a presence in the US. This is an important accomplishment because participation in the US has always been deemed impossible.

Q: What are the opportunities for Mexican telecom companies to participate in international markets?

A: Most companies say that they provide coverage throughout the country but no one says anything about participating in other markets. However, I do see several companies from other countries commercializing their services in Mexico. Very few companies are planning on doing this type of investment. The truth is that it is very complicated to venture into international operations, since you risk being fined, not obtaining the permits and so on. But in the end, we need to expand our scope and look for new markets.

Having this expansion mindset has helped us to develop solutions for international clients that have operations in multiple countries. Our focus on not buying solutions or applications but on developing them in-house allows us to provide tailored-made solutions for our clients. We like to say that one of our most important innovations is making round solutions for square-shaped problems, which means taking a chance and using other means to reach our goals and help communities. 

Q: What do you believe are the services that will be the most demanded in the coming years by businesses?

A: The applications that are being created in the market are becoming heavier, which is why phones are being sold with additional memory capacity. What we are seeing is that the market will consume more bandwidth capacity. Hence, preponderant companies will need to invest more to be able to support this. The truth is that today companies do not have the capabilities to support the bandwidth that will be needed.

Since the market will require more bandwidth, we have the responsibility of investing more in data transportation services in Mexico. Though lower prices are needed, it is important that companies not provide their services for free. Given the competition that exists, we are seeing a price war where companies are competing to offer more bandwidth at a lower price, which cripples their ability to make more investments in the long term. The future of the telecommunications market is rather good for companies focusing on innovation and long-term investment.

Q: In which sectors would CTC Telecom like to venture in the next few years?

A: We have several clients in all sectors and we provide a dedicated team for each of them. Where we would like to venture but have not because of the current conditions is the government sector. Unfortunately, that tends to be a sector where payments are delayed or not even made. It is sad, since doing business with the government should be understood as a safe business. Though we are not participating in this sector, eventually we will have to if we want to continue competing with larger players.

 

CTC Telecom is a telecommunications company that provides services in 12 states. The company, founded in 2017, offers telecommunication, IT, administration and support services

Photo by:   CTC Telecom
Gabriela Mastache Gabriela Mastache Senior Journalist and Industry Analyst