What happened to Mexico's B2B mobile sector in 2017-24?

Greater availability of plans for companies, better network access, increased competition between operators, notably MVNOs, and a reduction in promotional services involving social networks are among the key findings of a study by Mexican telecom regulator IFT on the development of B2B mobile services between 2017 and 2024.

IFT analyzed plans and offers made available by mobile carriers and by mobile virtual network operators for the recently published study.

Companies that hold together 80% of the market were considered. These are Telcel, AT&T, Bait, Movistar, Izzi Móvil, Bromovil, Yobi Telecom, Oui Móvil and Wimo.

In the postpaid segment, IFT found few changes in the competitive landscape. In 2017, AT&T, Movistar and Telcel were providing services to enterprises. The same companies, plus Izzi, provided these services in 2024.

There was also little variation in the data volumes and prices of the best-selling plans offered.

Notably, however, the number of plans allowing for unlimited use of social networks dropped from 69% in 2017 to 47% in 2024.

This trend has been pushed by mobile operators in other countries as well. Many have eliminated or reduced the so-called zero-rating for the consumption of certain services, such as WhatsApp or Instagram.

In the prepaid B2B segment, changes were more significant.

While in 2017 there was no B2B prepaid offer, five were available in 2024, all of them provided by MVNOs: Bait, Bromovil, Oui Móvil, Wimo and Yobi Telecom.

In general, the three main mobile carriers, AT&T, Telcel and Telefónica, saw data usage volumes rising, but related monthly income decline, according to the study.

The full study can be seen here.

What to expect

In 2025, the Mexican telecoms sector is expected to face a series of challenges, mainly related to regulatory changes, in addition to expanding connectivity demand and promotion of technological advances, for example via AI.

According to consultancy the Competitive Intelligence Unit (CIU), the creation of the Digital Transformation and Telecommunications Agency (ATDT), which will absorb the functions of IFT, is generating “uncertainties in the sector's governance.”

The consultancy said a lack of clarity on competences and coexistence with other bodies could trigger legal conflicts.

In fact, ATDT paused the delayed IFT-12 tender prepared by IFT, which was planned to award bands related to 5G.

According to The CIU, the interruption of the process demonstrates “the urgent need for secondary legislation that duly defines the powers of each body.”

“It is imperative that the new regulatory frameworks avoid functional duplications and ensure that regulatory processes are free of political interference,” the consultancy said in a press release.

5G, AI and more

From an operational perspective, the country's telecoms sector faces challenges in advancing the densification of 5G and the monetization of the technology, a process that could be delayed without the allocation of new spectrum bands.

Fitch Ratings anticipates stable growth in Mexico's telecoms market.

“This expansion will be propelled by rising fiber to the home (FTTH) subscriptions in the fixed-line segment, modest price increases, and ongoing postpaid migration in the mobile segment. We expect enhanced capex discipline to slightly improve credit metrics for most operators,” the agency said in a November report.

Fitch projects the capex-per-revenue ratio of the main operators to decrease to 16.9% this year, from a projected 17.3% in 2024 and 21% in 2023. The investment peak was reached in 2021-22.

In the fixed segment, competition is expected to remain fierce, as well as among MVNOs.

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The fixed segment is more competitive than the mobile one, where Telcel leads with over 60% of the market, followed by AT&T (15%), Walmart MVNO Bait (10%) and Movistar (7%).

The fixed segment, on the other hand, sees stronger challengers to América Móvil's leadership. Telmex leads with 40%, followed by Grupo Televisa (22%), TotalPlay (18%) and Megacable (17%).

All players, with the potential exception of Telmex, are expected to reduce capex in 2025 to preserve liquidity and focus on FTTH client activation, rather than on network expansion. 

The CIU said the structuring of a public policy for artificial intelligence, as well as a plan to protect mission-critical infrastructures, such as submarine cables and datacenters, are other key topics in 2025.

“Cybersecurity is a central concern, requiring the definition and implementation of effective mechanisms to protect critical infrastructure and foster digital trust,” it said.