The assertion that a country like Mexico needs exactly three mobile operators, or that there is a “perfect number” of competitors in a national market, is a generalization that does not reflect the complexity of the telecommunications environment. This idea is based on a mistaken assumption: that all operators compete for the same customer segment and offer identical value propositions.
The reality in Mexico, as in many other Latin American countries, is diverse. Some operators focus on specific niches, such as low-income users or rural areas, while others concentrate their efforts on corporate or high-consumption clients. Artificially limiting the number of competitors based on models from other countries ignores these particularities and can restrict digital inclusion.
It is not the same to talk about the consumption profile of an AT&T user compared to a Movistar user, as can be inferred from the difference in the average revenue per mobile service observed by these two companies. Likewise, the marketing and advertising reach of Telcel is not comparable to that of a mobile virtual network operator like Oxxo Cel. Factors such as financing, technological infrastructure, access to radio spectrum, and points of sale are decisive in determining the actual level of competition among different mobile providers within the same locality.
An illustrative example is the United States, where, despite three major national operators with their networks (AT&T, T-Mobile, and Verizon), dozens of regional companies also operate, providing services in rural areas and roaming to the larger operators. These companies have their own infrastructure and spectrum and cannot be classified as virtual operators. This plurality of models allows for better service to the market’s diverse needs.
In Mexico’s case, the same logic suggests that flexible structures should be encouraged to allow the coexistence of multiple operators with complementary approaches, rather than imposing arbitrary limits on the number of competitors.
What is true is that it is extremely difficult — if not impossible — for a new company to enter the market willing to build a mobile services operator from scratch. Any change in market dynamics in the short term will occur through mergers and acquisitions. It is also true that investment shifts forced by the technological evolution of mobile networks will eventually push all market players to look favorably upon active infrastructure sharing and the proliferation of neutral networks.
The exponential increase in costs associated with building 5G networks that meet promised service standards and the not-so-distant arrival of the first 6G networks will forge alliances that once seemed impossible.
Specifically, if we examine the advance of 5G technology in the context of Latin American connectivity, we find that it still represents an aspirational goal. Countries like Brazil, Chile, and Uruguay have demonstrated rapid adoption of this technology. By the end of 2024, Brazil had over 40 million 5G lines, representing a 20% penetration rate. Chile surpassed 26%, while Uruguay reached 28%. These achievements are explained, in part, by the higher purchasing power of their citizens, as well as by public policies aimed at facilitating the deployment of next-generation networks.
Mexico, by contrast, faces structural limitations that make accelerated adoption more difficult. One of the main barriers is the high cost of 5G-compatible devices, whose initial prices range between $300 and $1,000. In addition to the lack of spectrum allocation to promote this technology, only one of the three operators with its own infrastructure is consistently expanding the percentage of the population with access to 5G.
Naturally, the operator with the lowest revenue is expanding its network more cautiously, scrutinizing every cent invested in the country and warning authorities that it is unwilling to pay just any amount for a block of radio spectrum.
Although the publication of the draft telecommunications and broadcasting law has paused many of these discussions, reality dictates that the government will face challenges in promoting the rapid deployment of multiple 5G networks in the country in the short term.
Digital inclusion in Mexico is closely linked to affordable access to devices and an infrastructure that covers both urban and rural areas. Although equipment cost is one of the main barriers, it is not the only one. Comprehensive strategies that consider access to quality services, digital education, and creating relevant content for communities are equally necessary. Bridging the digital divide cannot be achieved merely by deploying antennas; it must be accompanied by initiatives promoting social, educational, and economic development.
Digital transformation, in this sense, becomes a key tool for advancing toward a more inclusive, efficient, and equitable society. From a public policy perspective, digital transformation can reduce bureaucracy, increase administrative transparency, improve the efficiency of public spending, and lower transaction costs. International organizations such as the Organisation for Economic Co-operation and Development (OECD), the International Telecommunication Union (ITU), and the European Parliament agree that digitalization impacts economic and social structures by facilitating inclusion, open innovation, and sustainability.
Although broadly and variably defined, digital transformation can be understood as a process aimed at improving public and private entities through the incorporation of information, communication, and connectivity technologies. This involves the use of computers or networks and the effective execution of activities in cyberspace, which significantly transforms the way institutions, businesses, and citizens operate.
In the private sector, digital transformation enables process automation, cost reductions, and the delivery of faster and more personalized services. In the public sector, meanwhile, it facilitates the development of smart territories, connected healthcare systems, online educational platforms, and mechanisms for electronic government.
The relationship between digital transformation and the Sustainable Development Goals (SDGs) is direct and strategic. The digitalization of services concretely contributes to goals such as the eradication of poverty (SDG 1), quality education (SDG 4), gender equality (SDG 5), decent work and economic growth (SDG 8), the reduction of inequalities (SDG 10), and the building of strong institutions (SDG 16). The International Telecommunication Union (ITU) recognizes digital transformation as a tool to improve citizens’ quality of life and advance the achievement of SDGs, following a top-down approach that complements the bottom-up recognition of the Internet as a human right.
In Mexico, this link between digital transformation and sustainable development must be strengthened through public policies integrating concepts into their design and execution. It is essential to understand that there is no single or universal solution to closing the digital divide. Each region of the country presents different needs, and the choice of appropriate technology, whether 4G, 5G, satellite, fiber optics, or community networks, must be based on technical and social studies that allow for the most cost-efficient solution. Equally important is digital literacy for the population, poverty reduction, and the creation of financing models that enable the most vulnerable sectors to access devices and services.
Ultimately, network coverage without financial inclusion and digital education has a limited impact. Any digital transformation strategy must be accompanied by a social approach that ensures no one is left behind. With its geographic, cultural, and socioeconomic diversity, Mexico faces both the challenge and the opportunity to build a digital development model that not only increases connectivity but also transforms how citizens access their rights, participate in the economy, and contribute to the country’s progress.
In conclusion, considering digital transformation an isolated goal would be a mistake. Its true value lies in its ability to serve as a driver of human development and a catalyst for the Sustainable Development Goals. To make this a reality in Mexico, a partnership is needed among the State, the private sector, academia, and civil society, united by a common vision: that of a more just, connected, and resilient country. Connectivity alone does not change lives, but when combined with education, equity, and opportunity, it can be the key to a more sustainable and inclusive future.
