Background and Relevance of the Situation
Mexico is set to begin its seventh year in 2026 of attempts to achieve a 5G spectrum auction that will enhance the communication experience for nearly 140 million end-users and boost the competitiveness of industries in their production processes. A newly created authority, the Comisión Reguladora de Telecomunicaciones (CRT), now leads this endeavor, with ample opportunity to gain credibility in an industry that contributes 4% to the national GDP.
New Regulatory Framework
The recently enacted Ley en Materia de Telecomunicaciones y Radiodifusión (LMTR) mandates the sectoral regulator, CRT, to announce a 5G spectrum auction plan within 180 natural days of its formation. This deadline falls on January 9, 2026.
While this does not guarantee an immediate announcement of a consultation mechanism or the first 5G spectrum auction’s preliminary bases, it indicates that CRT might present a more defined timeline of milestones. This would suggest that the first Mexican 5G auction is well-structured for 2027.
Potential Impact on Mexico’s Spectrum Policy
The CRT’s 5G spectrum plan, to be unveiled on January 9, has the potential to become a turning point for Mexico’s spectrum policy. Following federal government promises about economic incentives, CRT may employ more disruptive mechanisms that enable bidders to access frequencies more broadly and efficiently.
Mexico is the only robust Latin American economy that has yet to successfully initiate a 5G process, unlike Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Panama, Peru, the Dominican Republic, Uruguay, and Venezuela. These countries have either already allocated or are in the process of allocating 5G spectrum.
Mexico’s weak economy, expensive spectrum, and uncertainty surrounding the IFT’s demise have deterred previous 5G contest attempts. The CRT now has a golden opportunity to foster telecommunications infrastructure expansion through an appealing 5G process, amidst various challenges that have diminished the luster of other infrastructure projects in the past two administrations, such as those in electricity, railways, petroleum, and aviation sectors.
CRT’s Spectrum Plan Outline
The CRT has hinted at a possible outline for its 5G spectrum plan:
- From January 15-20, the CRT will hold a dialogue table on industrial connectivity.
- From February 3-5, another table will focus on connectivity via microwave links.
- From March 2-5, a final table will address massive 5G services.
“Incorporating these topics would imply that the country is preparing to redefine its spectrum policy with a broader vision than simple block allocation for mobile operators. If so, this approach suggests that the 2026 auction plan wouldn’t be a traditional exercise centered on mobile operators but an attempt to formulate a more comprehensive spectrum policy, oriented towards productive sectors and the country’s technological modernization,” said Isabel Reza, General Director at Regulatory Experts: Telecommunications and Broadcasting.
Spectrum Allocation in 600 MHz Band
In the final moments of 2025, CRT announced that the 600 MHz band would be considered in Mexico’s 5G spectrum auction.
These 70 megahertz of nationwide bandwidth would be beneficial for large-scale IoT deployment with reduced economic cost per square kilometer and strengthen cellular coverage in both urban and rural areas. It would also be advantageous for sectors like agriculture, according to Guillermo Solomón, a well-known figure in the Latin American telecommunications industry.
If CRT announces post-January 9 other spectrum allocation mechanisms besides national ones, it would imply that the new regulator intends to pursue 5G private network spectrum allocation, providing more opportunities for industries, ports, mines, medical centers, and technological campuses to access such telecommunications networks.
So far, the model has been “rigid,” primarily focusing on national block allocation and expensive licenses, noted Isabel Reza from Regulatory Experts: Telecommunications and Broadcasting.
“National auctions are inefficient for addressing industrial needs, as they force competition for national coverage blocks when businesses only require spectrum in specific geographical areas. Countries like Germany, Japan, the UK, and the US have enabled local licenses, shared spectrum, and hybrid models that allow more granular and efficient access,” she added.
Mexico’s Slow Progress in Industry 4.0
Mexico lags behind in Industry 4.0, as it barely capitalized on nearshoring opportunities during the previous administration, with the term losing substance in press releases despite Mexico being the designated country by economic and geopolitical circumstances for nearshoring gains.
Conversely, Brazil launched an active spectrum allocation plan to enable new production and value-added processes while simultaneously announcing tax incentives. This approach demonstrated Brazil’s commitment to facilitating 5G adoption and machine-to-machine connectivity through 5G auctions that included spectrum in the 700 MHz, 2.3 GHz, 3.5 GHz, and 26 GHz bands.
The CRT’s 600 MHz announcement is significant but insufficient without accompanying powerful spectrum for 5G and related technologies like IoT, such as the 3.5 GHz band, which the IFT left for CRT to work on years ago.
“5G works best when it integrates a low band (broad coverage), a mid-band (balance), and a millimeter wave band (high capacity). This is what ultra-high-speed is about,” said telecommunications expert Guillermo Solomón.
The challenge for Mexico and CRT remains the revenue model presentation. The CRT approaches January 9 asserting that Mexico’s radioelectric spectrum is 7% cheaper than the international average.
The 2013 constitutional reform in telecommunications and subsequent 4G auction brought AT&T, a US giant, to Mexico. However, the company threatens to leave due to the enormous costs imposed by the legislature for annual frequency usage, indicating that CRT’s challenge is not attracting a foreign giant like Verizon or T-Mobile but encouraging existing players to purchase more spectrum.
“The CRT’s announcement of additional mobile services spectrum allocation, as done now, symbolizes the balance between yin and yang. Where a determined CRT insisting on high spectrum exploitation fees represents darkness (yin), while acknowledging industry criticism and correcting its flawed study claiming Mexico’s radioelectric spectrum is cheap (yang). Ultimately, this authorities’ decision will determine how attractive the auction is, potentially resulting in a single bidder scenario,” said José Otero, Director of ICT Development Consulting.
“AT&T wouldn’t participate, and Altán isn’t in a position to acquire more spectrum. New entrants’ spectrum acquisition just became costlier with the approval of the mobile lines registration law in the country. Is the Mexican government ready for an auction with only Telcel as a bidder?” Otero, respected in Latin American telecommunications, added.
“The CRT’s announced working tables represent an opportunity to design a modern licensing model. The discussion should include local licenses, shared spectrum, regulated rentals, and dynamic access schemes following international best practices. Mexico requires a spectrum allocation model that allows more actors to access the spectrum. Diversifying licensing promotes competition, enables the digitalization of strategic sectors, and strengthens the country’s technological resilience. The plan will be a test of whether Mexico is willing to adopt a development-oriented approach,” concluded Isabel Reza.
