Alexandra Borgeaud
Research expert covering cybersecurity and tech in Latin America
5G in Mexico – statistics & facts
The global race to implement fifth-generation cellular technology (5G) coverage has begun. As the successor to 4G, 5G offers users lower latency, higher reliability, and better connection performance. Latin America, far from being an exception, is one of the regions where 5G is forecast to experience the greatest progression by 2030, playing a critical role in supporting digital transformation on the continent. The share of 5G mobile connections in Mexico, the second economy in the region, is expected to exceed 60 percent by 2030, despite the significant infrastructure and economic challenges encountered since the introduction of 5G in the country.
5G deployment: ready, set, go
The deployment of 5G in Mexico has notably been hindered by heavy regulation of annual rights for the use of telecom spectrums. Annual royalty payments have generally risen above the country’s inflation, while the telecommunications sector’s income has been either flat or declining, with low levels of foreign direct investment as a consequence. If there are no reforms and if the current trend continues, the cost for operators will continue to grow, thus limiting the ability and incentive to invest in the deployment of modern technologies. In this context, the Federal Institute of Telecommunications approved the launch of a public consultation in January 2023 for the auction of several frequency bands across the spectrum, whose allocation is necessary to meet the desired speed, coverage, and latency offered by 5G. The development of the necessary infrastructure thus mostly depends on the proactivity of operators and key industry players.Familiar players at the forefront of 5G technology in Mexico
As of September 2024, 28 5G-networks were deployed in Latin America and the Caribbean, including two in Mexico, owned by Telcel and AT&T Mexico. Telcel, owned by América Móvil is not only a revenue powerhouse but also the leading mobile operator in the country. Telcel was the first to launch commercial 5G mobile services in Mexico in February 2021. Operators are now shifting their focus to developing 5G use cases. While AT&T Mexico established a 5G Innovation Lab in 2022 to test new applications, Mexico’s telecoms regulator announced the creation of a dedicated committee to guide the development of industrial use cases for 5G. Looking ahead, the economic contribution of 5G in Mexico is expected to amount to 3 billion U.S. dollars in 2025, before increasing to 13 billion U.S. dollars by 2030. The government and key industry players will have to take the necessary steps to ensure this forecast is realized.
