Background and Current State of the Industry
The telecommunications industry in Mexico is navigating an uncertain path, marked by significant governmental changes but with no variation in the revenue-generating approach that has been in place for three decades. This approach positions Mexico’s radioelectric spectrum among the most expensive in the world, according to The Competitive Intelligence Unit (The CIU).
Governmental Changes and Consistent Revenue Approach
Despite political party changes, from the PRI to PAN and now Morena, governments have consistently utilized the radioelectric spectrum as a substantial source of revenue. This explicit revenue-generating criterion, focusing on maximizing fiscal income through high compensations and annual fees, was established during Ernesto Zedillo’s administration. This approach has remained largely unchanged, despite criticisms from the now-defunct IFT, GSMA, IDET, and international trends moving in the opposite direction.
Impact of High Spectrum Costs
The Mexican telecommunications market, encompassing mobile and fixed services (broadband and telephony), data, pay TV, and emerging technologies like 5G and the Internet of Things (IoT), reached a value of approximately $20 billion by the third quarter of 2025, according to The CIU.
The fundamental issue remains the cost of radioelectric spectrum. The CIU reports that annual spectrum fees in Mexico are more than double those of international references, while in Latin America they account for 20%.
Consequences of High Spectrum Costs
Ironically, the high cost of radioelectric spectrum has led to reduced income from spectrum payment. Between 2019 and 2024, spectrum payment in Mexico decreased from 19,980 million pesos to 16,776 million pesos. This has also resulted in spectrum returns, such as AT&T’s, due to high costs and failed auctions like the 5G (only three blocks were allocated in 2021).
Current Government Policies
Under President Claudia Sheinbaum’s administration, Mexico is experiencing radical changes in its governing structure for one of the most productive and strategically important sectors due to its innovative nature: telecommunications.
These changes include the extinction and absorption of former autonomous bodies, which previously served as specialized technical supervisors, and the establishment of institutions with greater dependence on the federal government.
The current government has announced plans to maintain the revenue-generating criterion but introduce discounts in the Federal Rights Law starting from 2026. These discounts aim to advance digital divide reduction in priority areas for the government.
The previous administration of Andrés Manuel López Obrador showed the most resistance to reducing spectrum costs. However, evidence indicates that the revenue-generating criterion has persisted as a state policy across neoliberal and fourth transformation governments.
Key Questions and Answers
- What is the current state of Mexico’s telecommunications industry? The industry faces an uncertain future with significant governmental changes but a consistent revenue-generating approach that makes Mexico’s radioelectric spectrum among the most expensive globally.
- How have government changes affected the telecommunications sector? Despite political party changes, governments have consistently used the radioelectric spectrum as a substantial revenue source. This approach has remained largely unchanged despite criticisms and international trends suggesting otherwise.
- What are the consequences of high spectrum costs in Mexico? High spectrum costs have led to reduced income from spectrum payments and resulted in companies like AT&T returning spectrum due to high costs and failed auctions.
- What policies is the current Mexican government implementing? Under President Claudia Sheinbaum, the government is introducing discounts in the Federal Rights Law starting from 2026 to reduce the digital divide in priority areas. However, they maintain the revenue-generating criterion.
- How has the revenue-generating criterion persisted? Evidence shows that the revenue-generating criterion has remained a state policy across neoliberal and fourth transformation governments, despite varying political administrations.
