Introduction
Recent data from Mexico’s telecommunications industry reflects a slowing growth rate. While it’s too early to draw definitive conclusions, the reduced sectoral growth can likely be attributed to two independent or interconnected factors: the quarterly economic contraction and regulatory uncertainty stemming from the change in government, including institutional transformation within the sector.
Economic Context
The national economy’s weak performance is a reality, with both investment and consumption showing signs of weakness. Moreover, the government change, the extinction of regulatory bodies, and reform initiatives to the Federal Telecommunications Law have created regulatory uncertainty.
The Data
Despite the national economic activity’s decline, with a 0.3% contraction by the third quarter of the year, Mexico’s telecommunications market continued to grow.
- The telecommunications industry grew by 3.5% compared to the third quarter of 2024 by the end of Q3 2025.
- This figure represents nearly a one-percentage point decrease from the previous quarter (0.9 percentage points less).
- The industry’s revenue totaled 155,800 million pesos.
- Mobile segment led the growth with 94,868 million pesos (60% of the market).
- Television pay-TV followed with 35,728 million pesos (23% of the market).
- Fixed segment reached 25,246 million pesos (17% of the market).
The telecommunications sector’s performance mirrored key national economic indicators: consumption and investment.
- Private consumption grew slightly in October, at 0.5% monthly, driven by household spending.
- Fixed Investment Bruta (IFB) plummeted by 3.9% monthly, indicating a loss of momentum in the country’s productive engines.
The Competitive Intelligence Unit (CIU) considers the regulatory environment and potential changes a central topic for Mexico’s telecommunications market.
Telefónica Movistar’s Future in Mexico
Following Telefónica’s president, Marc Mutra’s declaration about the company’s exit from Hispanoamérica, including Mexico, Movistar México issued a statement affirming its continued service provision for millions of users, prioritizing connectivity, quality, and service continuity.
Mutra’s statement caused Telefónica’s shares to plummet in the Ibex 35, the worst decline in the past five years. This has generated significant concern and uncertainty among Movistar’s customers in Mexico.
There is no specific date for Movistar’s exit from Mexico. As of now, the company is reportedly negotiating the sale of its assets.
Regardless of Telefónica’s international strategy, its departure from Mexico will add to the list of telecommunications companies leaving the country. Notably, Telefónica Movistar returned 40 MHz of radioelectric spectrum in the 2.5 GHz band, along with frequencies in the 800 MHz and 1.9 GHz bands, to the Mexican government through the now-defunct Federal Telecommunications Institute (IFT).
Since then, Movistar has operated in Mexico using AT&T’s infrastructure and spectrum under an access and capacity usage agreement between the two companies.
Key Questions and Answers
- What is causing the slowdown in Mexico’s telecommunications sector growth? The slowing growth is likely due to a combination of the national economic contraction and regulatory uncertainty from the government change, including sectoral institutional transformation.
- What are the key figures in Mexico’s telecommunications market performance? The industry grew by 3.5% compared to the third quarter of 2024, with mobile segment leading at 60% of the market, followed by television pay-TV (23%) and fixed segment (17%).
- What is Telefónica Movistar’s current situation in Mexico? Despite Telefónica’s president’s declaration about exiting Hispanoamérica, including Mexico, Movistar México continues to provide services, prioritizing connectivity and service continuity for its users.
- What are the national economic indicators affecting the telecommunications sector? Consumption and investment have shown weakness, with private consumption growing slightly (0.5% monthly) and fixed investment bruta (IFB) plummeting (3.9% monthly).
