Mexico Telecom Market Size (2024 - 2029)

Mexico Telecom Market Analysis

The Mexican telecom market is expected to register a CAGR of 6.5% during the forecast period. The Latin American telecommunication market is significantly large, and Mexico is the second-largest market in the region after Brazil. The most valuable Mexican telecommunications brand is Telcel, generating enormous amounts of revenue. Followed by Telcel, other telecom giants like Telmex, AT&T Mexico, Grupo Televisa, America Movil, and others dominate the market.

• The first commercial 5G mobile network was introduced in Mexico in February 2022. The deployment offers a big chance for the nation's growth and digitization. According to GSMA estimates, 5G deployment would significantly impact Latin America, with an increase in GDP of about 5% and an anticipated USD 90 billion by 2034. According to IDC, an IT analyst organization, Mexico's services sector would generate huge revenue during the first year of 5G operations.
• Compared to other countries in the region, Mexico is expected to be one of the first to commercialize 5G networks and is expected to have the highest 5G adoption rates by 2025. Along with Brazil, Mexico led the region in deploying IoT networks and was the first country in Latin America to define an AI strategy. However, Mexico also has one of the lowest mobile subscriber penetration rates, both recorded and predicted, suggesting that the exploitation of 5G technology and its applications may represent a non-existent pattern compared with the rest of the region.
• Mexico is a highly urbanized country, and the country's young, tech-savvy consumers drive demand for cutting-edge goods and services. Opportunities await providers in fixed and mobile broadband, bundling, and cable TV services due to regulatory reforms and government objectives to encourage usage and penetration. Major players are very competitive, and some rivals have banded together to strengthen competition in the market.
• Mobile, broadband, and broadcasting have significantly propelled the Mexican telecommunications business over the past ten years, routinely outpacing GDP growth. According to the Mexican Institute of Telecommunications, Mexico had about 125 million active wireless lines in 2021. By the end of 2022, there should be over 127 million active cellular lines, a 2% rise. According to the survey, America Móvil holds a 61% market share in terms of lines, outpacing Telefónica's 19% and AT&T's 15%. Virtual mobile operators account for 5% of the market. With a 49% market share in terms of subscriptions, Telmex dominates the fixed broadband market, followed by Televisa with 23%, Megacable with 12%, and Total Play with 10%.
• The COVID-19 pandemic significantly impacted the Mexican telecommunication industry and other facets of daily life across the country. The ability to enable widespread working from home in Mexico during the pandemic, drive capacity improvements and corresponding revenue growth, and expedite the shift from conventional to digital business models across all industries represent the country's key potential for telecommunications businesses. The nation's service providers, like Telmex, AT&T Mexico, and Grupo Televisa, furnished cutting-edge networks, prioritizing maintaining national connectivity, including making repairs and solving issues.

Mexico Telecom Industry Segmentation

The study provides an in-depth analysis of the telecommunication industry in Mexico. The Mexican telecom market is segmented by services, which is further classified into voice services (wired, wireless), data and messaging services, and OTT and pay TV.