Mexico Telecoms

Mexico is a Fast Grower telecom market in Central America with 3 main Mexico Telecom Companies and 107.3 million mobile connections. mexico telecoms

According to the International Telecommunication Union (ITU), the average mobile cellular tariff for Mexico in 2020 was 1.87 USD per month, while for the United States it was 16.33 USD per month, and for Canada it was 31.44 USD per month.

In terms of fixed broadband, the average package price in Mexico in 2020 was 24.95 USD per month, while for the United States it was 65.64 USD per month, and for Canada it was 78.85 USD per month, according to Cable.co.uk.

These statistics suggest that Mexico’s telecom prices are generally more affordable than those in the US and Canada. However, it’s important to note that these are just averages and that prices can vary widely depending on factors such as location, provider, and package features.

Regulatory agency: IFT

66%
market share

22%
market share

13%

market share

With a population approaching 125 million and with relatively low broadband and mobile penetration, Mexico’s telecom sector retains significant potential for growth. The market is still dominated by the incumbent Telmex and by Grupo Televisa, which together retain about two thirds of subscribers overall. A sector regulator set up in 2013 has enforced measures aimed at removing barriers to foreign investment and at reducing the market share of these dominant operators. The reforms are helping to make Mexico’s telecom market more competitive. The telecom service revenue growth in the Mexico over 2019-2024 will be driven by mobile data, fixed broadband, and pay-TV segments. Mobile data will be the largest revenue-contributing segment over 2019-2024 supported by rising smartphone subscriptions, increasing mobile data consumption, strengthening LTE networks, and the expected launch of commercial 5G services in 2021. Fixed broadband market will be the fastest growing segment, driven by robust growth in FTTx and fixed wireless subscriptions.

Ongoing fixed broadband network expansions as part of the government’s national development plan and Internet for all initiatives will improve the penetration of fixed broadband services in the country and contribute to fixed revenue growth. Pay TV revenue will increase over the forecast period, primarily supported by steady subscription growth in cable and projected significant adoption for IPTV services.

In the fixed broadband sector significant changes are underway, with the main cable TV providers Megacable and Grupo Televisa widening their bundled services offerings, and with some important market consolidation. The fibre sector has shown particularly strong growth during the last two years as the key operators expand their network reach beyond the core densely urban areas.