Written by

Ana Zapién

25 Jan, 2021 5 minutes

In recent times the gaming industry has had an unstoppable momentum. This industry is projected to attract close to 3 billion gamers by 2023 and consumer spending on games will grow to $ 196 billion by 2022.

Although this topic is not new to the world, the exponential growth of Mexico in this sector is really surprising; a market with 72.5 million players. The PWC Global Entertainment & Media Outlook report qualifies Mexicans as the gamers par excellence and estimated that by the end of 2020, revenues in this sector would reach 988 million dollars, which would represent an increase of 12% compared to 2019.

72.5

million players on market

988

million dollars in revenue

12%

increase compared to 2019

Mexico is not only a revelation for the gaming industry, this Latin American country has shown in recent years a greater impact in terms of the use of Over the Top (OTT) platforms. It will be analyzed that Mexico continues on its way to surpass Brazil as the largest OTT market in Latin America in 2022, with revenues that would go from 698 million dollars in 2019, to almost 1.5 billion dollars by 2024.

The challenge to get into the Mexican paradise

For foreign companies, Mexico seems like a market that is difficult to access, the first statements made by companies when faced with the need to enter the market are that the infrastructure is not developed and that there is little connectivity between providers, the result of a model learned from emerging markets.

As a model already learned, companies tend to be placed in large connection hubs such as Miami, since they are associated as the closest to Mexico, but in this traditional model the traffic does not flow directly, which significantly increases the delay, sometimes it is even lost completely. One of the main vehicles for provisioning content services to Mexico is the colocation on the Edge.

A neutral placement model at the Edge

To configure the optimal route, it is necessary to be colocated in a neutral data center on the border with diverse connection options, such as MDC, thus ensuring that the traffic will go through the shortest possible route. Network operators, content and game providers need the same thing: to be on the edge.

Explore our data centers on the border

Meet the MDC locations

At MDC we are experts in the Mexican market and also in the deployment of infrastructure. We have the highest density of Mexican networks on the border and the location at our strategic points is the gateway to the market n. 1 in gaming and OTT in Latin America.

How do Mexican networks work?

Traffic originating in northern Mexico is routed through the United States and Mexican networks have developed over the years their infrastructure designed to connect directly with the United States, making the northern route a vast and robust that will continue to grow.

Providers such as Telia, Sparkle, GTT, TATA to name a few, as well as content providers such as Cloudflare, G-Core Labs and Akamai, as well as other CDNs that distribute gaming content, have seen an option at the border to grow their backbones and serve the Mexican market. The border concentrates more Mexican operators than anywhere else in the world, even more than within Mexico.

MDC with presence in key border cities

McAllen, Laredo, El Paso, Nogales, San Diego are today main or redundant hubs for most of the operators in Mexico. So having a presence on this Edge is like being locally connected to a node in Mexico.

The city of El Paso is so easily accessible that it can be traveled in an average trip of 20 minutes or less. Its proximity to the border makes this city a strategic market for Mexican operators seeking to unload the Dallas, Los Angeles, and even Phoenix markets.

MDC El Paso: connectivity beyond the border

MDC El Paso: connectivity beyond the border

Read the full article

MDC El Paso: connectivity beyond the border

McAllen represents more than 500 miles of savings in Transportation, with a latency of 40 milliseconds that improves the experience to the end user. The concentration of operators, or carriers, with a global presence in the city of McAllen eliminates the need for Mexican operators to travel to Dallas to obtain telecommunications services.

Multiple connection possibilities and a historical record in the peering with Mexico

Mexican networks consider McAllen part of their backbone. This city offers connections to multiple networks with various connectivity options such as MEX-IX, the Internet Exchange Point located in McAllen and operated by MDC.

The MEX-IX is only 10 miles from the border with Mexico and allows the main CDNs in the industry, cloud providers, content & gaming and the most important Mexican operators to peer.

In recent months MEX-IX has reached record traffic peaks, with a maximum of 130Gbps in November 2020, a historic milestone for peering in Mexico.

MDC is the option to help cloud, content and gaming companies to provide services in Mexico, a country that demands more and more content. MDC’s data centers are enabled to meet the needs of this sector and are the safest route to enter the Mexican market.

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