Introduction
According to a recent CIU report by Carlos Hernández, the mobile telecommunications industry experienced a subtle deceleration in the first quarter of 2025 compared to previous years. This slowdown can be attributed to impending regulatory and normative changes in the industry, as well as a noticeable global economic slowdown.
Economic Context
The report highlights that regulatory uncertainty, combined with a contained macroeconomic environment, contributed to the industry’s deceleration. The Mexican Institute of Geography and Statistics (Inegi) reported a mere 0.8% annual growth during the first quarter of 2025, which is less than half the population growth rate and only 0.4 percentage points higher than the previous quarter.
Mobile Telephony Market Performance
The mobile telecommunications market in Mexico saw a modest annual growth of 1.4% in the first quarter of 2025, generating revenues of $89,588 million pesos. This growth barely surpasses the previous quarter’s performance, primarily due to a 6.6% decline in mobile device sales.
Market Share
- Telcel held 66.2% of the total market share.
- AT&T followed with 22.3%.
- Telefónica secured 6.9%.
- The remaining 4.6% was shared among the Mobile Virtual Network Operators (MVNOs).
Revenue Breakdown by Component
Telcel experienced a limited growth of 0.8% in service revenue, while equipment revenue saw a decline of (-)14.5%, marking four consecutive quarters of contraction.
AT&T, however, achieved a remarkable annual growth of 9.8% in Q1 2025, generating revenues of 19,832 million pesos (mdp). This surge was driven by a 7.1% growth in the services subsegment, supported by an expansion of its customer base, particularly in the postpaid modality, and a 14.7% increase in equipment sales due to its commercial strategy.
Telefónica, the third-largest competitor, reported a 1.5% increase in revenues during Q1 2025, reaching 6,145 mdp. This outcome was a result of a (-)9.9% decline in equipment revenue and a 5.4% growth in the services component.
The Mobile Virtual Network Operators (MVNOs) experienced a double-digit annual growth of 40.9%, generating revenues of 4,819 mdp in Q1 2025. This increase was fueled by the continuous expansion of their user base.
Average Revenue Per User (ARPU)
Telcel reported the highest ARPU in the market at 178 pesos, a 0.8% annual increase. AT&T users generated an ARPU of 141.9 pesos per month, a 3.0% interannual increase. Telefónica’s estimated monthly ARPU was 73.3 pesos, while the combined ARPU for MVNO users is projected at 60.1 pesos.
