Overview and Key Figures
The dynamism of telecom operators’ revenues during the first trimester of 2025 (1T-2025) confirms the arrival of a near-stagnation scenario in the telecom sector, according to data collected and published by The Competitive Intelligence Unit (The CIU).
Annual growth was a mere 1.2%, the lowest since 1T-2021, accumulating $151.3 billion Mexican pesos (mmp).
Segment-wise Impact
This slowdown is particularly evident in the Mobile Segment, which accounts for 59.2% of total sector revenues at $89.6 mmp. While mobile consumption (+4.4%) and service contracting (+6.5%) have remained dynamic, the sale of equipment saw a decline of -6.6% during the period.
Meanwhile, the Fixed Segment (Fixed Telephony and Broadband) rebounded but to a lesser extent, reaching $25.9 mmp or 17.1% of total sector revenues, a 3.1% increase annually. This growth is mainly attributed to the rise in broadband access contracts.
In contrast, the segment of Restricted Television and Convergent Services experienced a decline for the first time in recent history, falling -0.6% to $35.9 mmp or 23.7% of total revenues, due to a -6.8% annual drop in pay-TV subscriptions. Satellite provision without bundling or added value offerings continues to lose relevance for Mexican households.
Multifaceted Slowdown
The sector’s deceleration cannot be understood without looking beyond the numbers, where the economic environment plays a crucial role.
Lower consumer spending, resulting from national economic deceleration, has directly impacted expenditure on acquiring and upgrading equipment, as well as contracting non-essential services like pay-TV.
Additionally, a climate of regulatory uncertainty and the international geopolitical context contribute to this slowdown.
The lack of definition and consistency in the competition policy, challenges in implementing mechanisms for competitive rebalancing, and insufficient incentives for new fixed and mobile network investments create a strategic pause among operators.
The institutional environment has not favored the sector either. The transition to a new sectoral authority has eroded investor confidence, who prefer to wait before making strategic moves or deploying infrastructure, especially given the lack of regulatory framework or conditions for mid- to long-term play.
Looking Ahead
The Mexican telecom sector stands at a crossroads. Current figures do not indicate a collapse but serve as a clear warning sign.
Connectivity and efficiency in service provision should be national priorities, especially given the growing digitalization that requires a coordinated strategy among government, regulators, and operators.
Regaining dynamism will not be easy. It involves having legal certainty, strengthening the sectoral regulator, defining an effective competitive route, and creating investment-conducive conditions.
Connectivity should not be held hostage by uncertainty and macroeconomic fluctuations. Mexico needs a robust, competitive, and inclusive telecom sector. The time to act is now.
Key Questions and Answers
- What is causing the slowdown in Mexico’s telecom sector? The slowdown is due to a combination of structural, regulatory, and cyclical factors that have hindered the industry’s post-pandemic growth trajectory.
- Which segments are most affected by this slowdown? The Mobile Segment has experienced a decline in equipment sales, while the Fixed Segment’s growth is modest. The Restricted Television and Convergent Services segment has seen its first annual decline.
- What role does the economic environment play in this slowdown? Lower consumer spending due to national economic deceleration has directly impacted expenditure on acquiring and upgrading equipment, as well as contracting non-essential services like pay-TV.
- What are the challenges faced by the sector regarding regulation and institutional environment? The lack of definition and consistency in competition policy, challenges in implementing competitive rebalancing mechanisms, insufficient investment incentives, and uncertainty surrounding the transition to a new sectoral authority contribute to this slowdown.
- What steps are necessary for the Mexican telecom sector to regain its dynamism? These include having legal certainty, strengthening the sectoral regulator, defining an effective competitive route, and creating investment-conducive conditions.
