Introduction
The State Digital Development Index (IDDE) 2025, developed by the Mexico Digital Center, highlights that while Mexico has made progress in digital infrastructure, usage, and services, affordability remains a significant challenge. Salma Jalife, the director of the Mexico Digital Center, emphasized that internet service costs exceed 2% of average income, making it unsustainable for many households and businesses.
Progress in Digital Infrastructure
Over the past five years, Mexico has seen substantial improvements in broadband speeds. Fixed broadband average speed increased from 20 to 72 megabits per second (Mbps), and mobile speeds rose from 26 to 52 Mbps. Moreover, 67% of connections are now fiber optic, and half the population has 5G coverage. The deployment of data centers (hyperscale, colocation, and edge) is also accelerating.
High Costs Despite Increased Coverage
Despite these advancements, increased coverage does not automatically translate to more subscriptions or better user experiences if the price is prohibitive. The monthly internet expenditure represents 3.5% of the average Mexican worker’s income, surpassing the UIT (International Telecommunication Union) recommended threshold of 2%. In lower-income households, belonging to the first quintile of income, this figure can reach 7.5%.
Alberto Farca, the vice president of Projects and co-founder of the Mexico Digital Center, stated, “More coverage does not automatically translate to greater penetration. We need to work on both coverage and affordability, as well as quality.”
Affordability Challenges
The affordability issue extends beyond internet service costs. Acquiring a smartphone equates to 19% of a worker’s monthly income, while a laptop represents 44%. These costs create unsustainable burdens for millions of people who require digital tools for education, work, banking, and administrative tasks.
The Digital Divide
As a result, there is a “glass ceiling” effect. While digital infrastructure and capacity expand, a significant portion of the population remains unable to participate in the digitalization trend due to affordability constraints.
Policy Recommendations
Jalife proposed a public policy approach focusing on regulatory intervention and targeted social programs to address the needs of students, older adults, and low-income households. The IDDE 2025 comprises 75 indicators, 12 sub-pillars, and three pillars (Infrastructure, Digitalization of Society, and Innovation) with a maximum score of 300 points to measure quinquennial evolution (2021-2025).
Competitive Landscape and Price Reductions
The IDDE 2025 advises that the immediate priority is not only achieving speed benchmarks but also making digital access sustainable. Increased competition in fixed broadband and minor price reductions in over half of the states could significantly boost digital inclusion within a year.
Data Center Infrastructure
However, the IDDE 2025 warns that while progress has been made in data center infrastructure, with over 300 edge data centers established in four years, more than half of the states still have minimal or no data center presence.
Social Pillar Analysis
The IDDE 2025’s social pillar analysis reveals a paradox: while the economic use of the internet is growing, with electronic banking increasing by 14% and online shopping rising by 9%, the link between citizens and government has weakened. Only 37% of users currently engage in online transactions or procedures, a 15% decrease from the pandemic period.
Accessibility and Digitalization in Healthcare
In a context of skill gaps, expensive equipment, and unaffordable services, the benefits of public digital platforms are diluted. Digitalization often becomes limited access to universal services.
Digitalizing Trámites and Bureaucratic Transformation
Jalife emphasized the need to harmonize laws, measure outcomes, and coordinate efforts among federal, state, and municipal levels to make digitalization meaningful. The challenge lies not only in moving trámites online but also in transforming the bureaucratic logic that renders them inaccessible, even digitally.
Productivity Sector Analysis
The productivity sector analysis mirrors the same pattern of inequality. E-commerce is booming, with more companies purchasing and selling online, and digital sales volume growing by 52% nationally.
Limited Adoption of Advanced Technologies
However, the adoption of cutting-edge technologies (artificial intelligence, Internet of Things, robotics, or blockchain) remains marginal, affecting only 7% of companies.
Micro and Small Enterprises
The disparity is more pronounced among microenterprises, with only 28% having internet access and 17% using electronic banking services. Affordability constraints once again limit productivity potential, preventing these businesses from competing in the new economy.
Key Questions and Answers
- What is the main barrier to digitalization in Mexico, according to IDDE 2025? Affordability is the primary obstacle, with internet service costs exceeding 2% of average income and digital devices like laptops representing a significant portion of monthly income for many Mexicans.
- What progress has been made in digital infrastructure? Mexico has seen substantial improvements in broadband speeds, with fixed and mobile speeds increasing significantly. Fiber optic connections are now the majority, and half the population has 5G coverage.
- Why are high costs a concern despite increased coverage? While more coverage is available, the high cost of internet services and digital devices like laptops creates unsustainable burdens for many households and businesses, preventing greater digital penetration.
- What policy recommendations does IDDE 2025 propose? The report suggests regulatory intervention, targeted social programs, and increased competition in the broadband market to make digital access more sustainable.
- What challenges does the social pillar analysis reveal? Despite growing economic use of the internet, the link between citizens and government has weakened, with fewer users engaging in online transactions or procedures.
- What are the key findings regarding digitalization in healthcare and productivity sectors? While e-commerce is booming, the adoption of advanced technologies remains marginal. Micro and small enterprises face significant affordability constraints, limiting their productivity potential.
