Introduction
Mexico faces a technological paradox: despite growing mobile data usage, surpassing 6 GB per user monthly, only 14% of its population has access to 5G, compared to the OECD average of 41%. This technological lag stems from excessive taxation on spectrum usage, as highlighted by national and international voices, including the OECD and GSMA.
International Perspective
The OECD points out that Mexico’s revenue scheme, based on auctions followed by disproportionate annual charges, distorts the economic efficiency of spectrum and creates negative incentives for its possession. The GSMA emphasizes that over 90% of the total spectrum cost in Mexico comes from annual payments, while in most countries this proportion ranges between 5% and 10%. While the world favors affordable and manageable models, Mexico insists on one of the most burdensome and unproductive.
Questionable Measurements
Despite these warnings, the recently created Mexican Telecommunications Regulatory Commission (CRT) released a methodological bulletin stating that “the cost of spectrum in Mexico is 7% below the international average.” However, this conclusion is misleading: the CRT’s comparative analysis does not specify key band measurements for 4G and 5G, omits the actual present value calculation of annual rights, and uses a heterogeneous sample mixing countries, regions, license types, and disparate obligations.
Market Impact
The high cost is not an academic hypothesis or industry speculation but a market reality. Movistar returned all its spectrum, and AT&T relinquished some frequencies in various bands. Annual rights revenue dropped 16% between 2019 and 2024, and spectrum block auctions have resulted in no interested bidders. This combination reveals a vicious cycle that the CRT fails to address: high costs reduce spectrum possession and usage, less possession reduces revenue, and consequently, lower revenue maintains high prices.
GSMA’s Estimate
The GSMA estimates that if Mexico aligns its spectrum policy with international standards, five million additional people would have 4G coverage, and mobile speeds would be 32% faster.
Correcting the Course
The reality is clear: Mexico has one of the world’s most expensive spectrum regimes, whether compared to the average, median, or any international sample. The strategy is twofold: reduce annual rights nominally and establish discount mechanisms linked to investments to accelerate coverage not only in rural and priority areas but throughout the territory. In this way, Mexico can break the vicious cycle. Otherwise, persisting with a burdensome, regressive, and universally questioned scheme (by the OECD, GSMA, and multiple analysts) will condemn the country to remain behind in a market where connectivity is the essential infrastructure of the 21st century.
Key Questions and Answers
- What is Mexico’s technological paradox? Despite growing mobile data usage, only 14% of Mexico’s population has access to 5G, hindering technological advancement.
- What causes this lag? Excessive taxation on spectrum usage, as highlighted by international organizations like the OECD and GSMA.
- What does the CRT’s analysis suggest? The CRT claims Mexico’s spectrum cost is 7% below the international average, but this conclusion is misleading due to questionable measurements and omissions.
- How has the high cost impacted the market? High costs have reduced spectrum possession and usage, lowering annual rights revenue and discouraging investment in technology.
- What does the GSMA propose? Aligning Mexico’s spectrum policy with international standards could provide 4G coverage to five million more people and increase mobile speeds by 32%.
- How can Mexico address this issue? Reduce annual rights nominally and establish discount mechanisms linked to investments to accelerate spectrum coverage nationwide.
