Introduction
The deployment of 5G networks in Mexico is progressing slowly, not due to a lack of technical capability but because of burdensome tax policies and regulations that discourage innovation rather than reward it. An analysis by Nicolás Lucas-Bartolo, published in El Economista, clearly outlines the challenges faced by operators caught between excessive taxes, narrow margins, and a state more focused on revenue collection than digital competitiveness promotion.
5G Deployment Status
Since its launch in 2022, the 5G rollout has been uneven. AT&T covers 56 cities, Telcel reaches 125, and Telefónica, leveraging AT&T’s network, only covers 38. There are currently 21 million active accesses, a modest figure compared to Brazil’s 50 million. The disparity isn’t technological but fiscal: while Brazil’s margins exceed 45%, Mexico’s hover around 20% for AT&T and 9% for Telefónica. With such numbers, serious investment and expansion in underserved communities remain unlikely.
5G’s Significance
5G isn’t merely a speed enhancement; it’s the foundation for the Internet of Things, augmented reality, and smart cities. Its digitalization of sectors like healthcare, education, and industry is crucial. However, Mexico’s inadequate policies hinder progress. Post-pandemic inflation, fierce competition, and an obsession with squeezing the sector have turned a historic opportunity into a slow advancement reflecting inertia rather than future vision.
Contrast with Brazil
In Brazil, healthy margins enable infrastructure investment and coverage expansion. In Mexico, regulation and high spectrum costs prevent 5G from reaching rural areas or most prepaid users. Despite President Claudia Sheinbaum’s promise to universalize connectivity by 2030 under Plan México 2025-2030, without fiscal and regulatory reform, this goal will remain unfulfilled, like many other broken technological promises.
Recommendations for Mexico
The government must decide whether it wants to collect or transform. Reducing spectrum taxes, accelerating auctions, and encouraging public-private partnerships are urgent measures. Integrating satellite networks, as proposed by the president, developing optical fiber infrastructure, and training the population are essential steps. Without a tax structure that penalizes investment and bureaucracy that fails to grasp the pace of change, there can be no “digital transformation.”
Conclusion
Mexico stands at another crossroads. It can continue cautious progress or embrace bold decisions for the digital future. President Sheinbaum has the rhetoric and plans; now, she must alter the fiscal and regulatory course. Otherwise, Mexico will fall behind in the 5G race.
Key Questions and Answers
- Q: Why is Mexico’s 5G deployment slow? A: It’s not due to technical limitations but rather burdensome tax policies and regulations that discourage innovation.
- Q: How do Mexico’s margins compare to Brazil’s? A: While Brazil’s margins exceed 45%, Mexico’s are around 20% for AT&T and 9% for Telefónica, discouraging serious investment.
- Q: What is the significance of 5G for Mexico? A: 5G supports the Internet of Things, augmented reality, smart cities, and the digitalization of key sectors like healthcare, education, and industry.
- Q: What are the recommendations for improving Mexico’s 5G deployment? A: Reduce spectrum taxes, accelerate auctions, encourage public-private partnerships, integrate satellite networks, develop optical fiber infrastructure, and train the population.
