Introduction
The notion that a country like Mexico requires precisely three mobile operators or has an optimal number of competitors in its national market is a generalization that fails to account for the complexities within the telecommunications landscape. This idea stems from a flawed assumption: that all operators target the same customer segment and offer identical value propositions.
The Reality of Mexico’s Telecommunications Market
In reality, Mexico, like many other Latin American countries, boasts a diverse telecommunications sector. Some operators cater to specific niches, such as low-income users or rural areas, while others focus on corporate or high-consumption clients. Artificially limiting the number of competitors based on models from other countries disregards these nuances and may hinder digital inclusion.
Distinct User Profiles and Market Segmentation
The consumption profiles of AT&T and Movistar users, for instance, differ significantly due to varying average income levels for mobile services. Similarly, Telcel’s marketing and advertising strategies contrast with those of a mobile virtual operator like Oxxo Cel. Factors such as funding, technological structure, spectrum access, and retail presence are crucial when determining the actual competition among various mobile service providers in a given area.
The U.S. Model: A Plurality of Models
In the United States, despite the presence of three major national operators (AT&T, T-Mobile, and Verizon) with their own networks, numerous regional companies provide services in rural areas and offer roaming to larger operators. These companies possess their own infrastructure and spectrum, distinguishing them from virtual operators.
This variety of models enables better addressing of the market’s diverse needs. In Mexico, the same logic suggests fostering flexible structures that allow for the coexistence of multiple operators with complementary approaches rather than imposing arbitrary limits on the number of competitors.
Challenges in Market Entry and Technological Advancements
It is extremely challenging, if not impossible, for a new company to enter the market and build a mobile service provider from scratch. Market dynamics will change in the short term through mergers and acquisitions. Additionally, technological advancements will eventually compel all market players to embrace infrastructure sharing and neutral network proliferation.
5G Deployment in Latin America: A Comparative Analysis
Examining 5G technology advancements in the Latin American context reveals that it remains an aspirational goal. Countries like Brazil, Chile, and Uruguay have demonstrated rapid 5G adoption. By the end of 2024, Brazil had over 40 million 5G lines, representing a penetration rate of 20%. Chile surpassed 26%, while Uruguay reached 28%. These achievements can be partly attributed to higher citizen purchasing power and public policies aimed at facilitating the deployment of next-generation networks.
Mexico, however, faces structural limitations hindering such rapid adoption. High 5G device costs (ranging from $300 to $1,000) and the lack of spectrum allocation for this technology are significant obstacles. Moreover, only one of Mexico’s three infrastructure-owning operators consistently expands 5G coverage, albeit at a slower pace due to budget constraints and reluctance to overpay for radiofrequency spectrum blocks.
Digital Transformation and Sustainable Development
Digital transformation is a crucial instrument for advancing towards a more inclusive, efficient, and equitable society. From a public policy perspective, digitalization impacts both economic and social structures by facilitating inclusion, open innovation, and sustainability.
The concept of digital transformation encompasses improving public and private entities through the integration of information, communication, and connectivity technologies. This involves not just using computers or networks but effectively executing activities in cyberspace, significantly transforming how institutions, businesses, and citizens operate.
For the private sector, digital transformation enables process automation, cost reduction, and more agile, personalized services. In the public sector, it facilitates smart territories development, connected health systems, online educational platforms, and e-government mechanisms.
Digital Transformation and Sustainable Development Goals (SDGs)
The relationship between digital transformation and SDGs is direct and strategic. Digitalizing services directly contributes to goals such as poverty eradication (SDG 1), quality education (SDG 4), gender equality (SDG 5), decent work and economic growth (SDG 8), reducing inequalities (SDG 10), and building effective, accountable institutions (SDG 16).
The United Telecommunication Union (UIT) acknowledges digital transformation as a tool to enhance citizens’ quality of life and advance SDGs, complementing the bottom-up approach that recognizes internet as a human right.
Strengthening the Link Between Digital Transformation and Sustainable Development in Mexico
To fortify the connection between digital transformation and sustainable development in Mexico, public policies must integrate both concepts. Recognizing that there is no one-size-fits-all solution to bridge the digital divide, each region’s unique needs must be addressed through technical and social studies to provide the most cost-effective solution.
Digital literacy, poverty reduction, and sustainable financing models for vulnerable sectors to access devices and services are also essential.
Conclusion
Viewing digital transformation as an isolated goal is a mistake. Its true value lies in its potential to drive human development and catalyze SDGs. To make this a reality in Mexico, collaboration between the state, private sector, academia, and civil society is necessary, united by the vision of a more just, connected, and resilient nation. Connectivity alone does not change lives; however, combined with education, equity, and opportunities, it can unlock a more sustainable and inclusive future.
