Background on the New Telecom Law and its Relevance
Mexico is set to establish a 5G spectrum allocation plan by the end of 2025, following seven years of unsuccessful attempts due to political, economic, tax, and regulatory obstacles. The new telecommunications law, proposed by President Claudia Sheinbaum, aims to reformulate the legal framework for Mexican telecommunications and broadcasting.
Key Figures and Institutions
President Claudia Sheinbaum, who has been at the forefront of this legislative initiative, seeks to enhance telecom sector efficiency and improve service quality and coverage for consumers. The Agency for Digital Transformation (ATDT) will be responsible for developing a 5G radiofrequency band allocation plan within 180 natural days.
Timeline and Key Dates
- The new telecommunications law is expected to be voted on during the current legislative period before April 30, 2023.
- Once passed, President Sheinbaum will have ten natural days to promulgate the new legislation, which will take effect 30 natural days after its publication in the Federal Register (DOF).
- The ATDT will then have 180 natural days to finalize the 5G spectrum allocation plan, with a deadline of latest mid-December 2023.
Previous Attempts and Challenges
Mexico, through the Federal Telecommunications Institute (IFT), attempted to allocate different radiofrequency bands for 5G coverage starting in 2019. However, factors such as Mexico’s economic performance during the previous administration, the COVID-19 pandemic, and the Secretariat of Finance’s insistence on rewriting criteria related to annual payments for spectrum usage, ultimately derailed these efforts.
Even by early 2025, a federal government intervention prompted the IFT to cancel the IFT-12 mobile spectrum auction for 5G services, after months of analysis and industry consensus. The IFT-12 aimed to auction 2,223 frequency lots across various radiofrequency bands for national, regional, and local 4G and 5G services.
The IFT-12 targeted spectrum for auction in bands such as 600 MHz, 1.5 GHz, 2.5 GHz, as well as other lots in the 1.7/2.1 GHz, 1900 MHz, and 800 MHz spectra.
Importance of the New Legislation
The proposed law by Claudia Sheinbaum acknowledges the need for accelerated deployment of mature global 5.5G or 5G Advanced technology in Mexico, which remains the only significant Latin American economy yet to conduct a spectrum auction for this technology.
Key Questions and Answers
- What is the purpose of the new telecom law? The new law aims to reformulate Mexico’s legal framework for telecommunications and broadcasting, enhancing sector efficiency and improving service quality and coverage.
- Who is responsible for creating the 5G spectrum allocation plan? The Agency for Digital Transformation (ATDT) will develop the plan within 180 natural days of the law’s enactment.
- When is the new telecom law expected to be passed? The law is anticipated to be voted on before April 30, 2023, during the current legislative period.
- What challenges has Mexico faced in deploying 5G technology? Previous attempts by the IFT to allocate spectrum for 5G have been hindered by economic performance, pandemic-related issues, and regulatory obstacles.
- Why is the new legislation crucial for Mexico? As the only significant Latin American economy without a 5G spectrum auction, this law is vital for accelerating the deployment of mature 5.5G technology.
