Introduction
Every government aims to enhance the quality of life for its citizens by implementing public policies that address shortcomings in government service offerings while encouraging private sector investment, which in turn increases job opportunities in the market. This requires coordination among all governmental departments, both vertically and horizontally, to identify areas needing modifications that benefit the population.
The Importance of Telecommunications
Telecommunications are crucial as they directly impact the performance of all jurisdictions in a country, regardless of whether it’s a federal agency, local government, or the nation’s presidency. Ensuring favorable conditions for companies in this industry encourages investment, leading to technological innovation.
Mexico’s Telecommunications Challenges
For decades, Mexico’s reality has not aligned with logic and reason. Recognized sources, both nationally and internationally, have identified that the costs of using radio-electric spectrum for mobile services are excessive. Maintaining this revenue-generating policy only results in negative externalities, such as Telefónica and AT&T returning their licenses.
5G Deployment Comparison
As of late 2024, Mexico’s 5G population coverage stands at 45.76%, while India reaches 82.15%. These figures become more perplexing when considering Mexico’s higher per capita income (USD 2,696) compared to India’s (USD 14,157 nominally and USD 11,158 when adjusted for purchasing power parity). Despite this, Mexico’s 5G user base has consistently consumed data, albeit at increasing prices for users.
India’s 5G Success
India has successfully increased mobile broadband consumption via 5G networks while lowering costs for consumers, as demonstrated by José Antonio Peña Merino, Secretary of the Agencia de Transformación Digital y Telecomunicaciones (ATDT), during the México Digital Summit 2025.
Government Initiatives in India
Several government-driven conditions and initiatives in India foster 5G adoption. These include cost structure adjustments for mobile operators and incentives created for the sector.
Telecom Relief Package (September 15, 2021)
This package reduced payments from operators to the government, lowered bank guarantees for licenses, and simplified permission processes for infrastructure deployment. It also allowed the use of low-cost public infrastructure for small cell installations, reducing 5G connection costs.
Incentive Linked to Production (PLI)
This program offers 4-7% incentives to manufacturers, enabling mobile operators to save significantly by purchasing locally produced 5G infrastructure instead of importing. This results in estimated annual savings of 10-20% per unit, offsetting higher local production costs (12-13%) compared to China.
Spectrum Allocation
India’s 5G spectrum auctions resulted in substantial savings for telecom operators by eliminating usage charges (SUC) for new spectrum allocations, previously accounting for 3-8% of operators’ gross revenues. Estimated annual savings amount to US$ 587 million (Bharti Airtel: US$ 264 million, Reliance Jio: US$ 247 million, and Vodafone Idea: US$ 76 million) over a 20-year spectrum concession, totaling US$ 11.68 billion.
Conclusion
Mexico lacks similar initiatives to reduce mobile service operator costs. Lower costs in India allow greater pricing flexibility for operators, enabling them to offer cheaper services with better profit margins than their Mexican counterparts.
Moreover, by mid-2025, India is expected to have a higher 5G phone penetration (80%) compared to Latin America (41%), including Mexico. Low-cost Indian brands offer 5G phones up to 50% cheaper than Mexican ones, facilitating technology adoption.
The ATDT’s presentation aimed for increased Mexican data usage, 10 GB per user at 100 pesos, universal 5G services, and 5G network deployment promotion. Replicating India’s measures could benefit Mexico, potentially saving US$ 11.68 billion in 20 years through spectrum allocation model changes.
Ultimately, the Indian government’s goal is to become a telecommunications powerhouse. To achieve this, numerous measures have been adopted to facilitate infrastructure deployment by operators. The message is clear: government support is essential for telecommunications sector growth.
May the ATDT succeed in its endeavors, bringing benefits to Mexican citizens.
