The GSMA presents its ICT policy recommendations for Mexico's next government

This is an automated translation of the original release published in Spanish.

By the GSMA

The GSMA, the global association of the mobile industry, presented "The path to a digital and connected Mexico", a series of ICT public policy proposals aimed at the candidates who will compete for the presidency on June 2. The report highlights that, although 4G coverage reaches 94% of the population, significant challenges still persist in terms of the usage gap. Some 47% of Mexicans have 4G coverage available, but do not access the services due to obstacles such as not being able to buy a device or not knowing how to use the internet. The organization also warns of a major weakness in Mexico's connectivity policy: the high cost of spectrum.

The GSMA document makes recommendations under four lines of action:

Spectrum policy

The spectrum in Mexico is among the most expensive in the world, mainly due to the annual rates established in the Federal Law of Rights that represent 85% of the total annual cost of the resource, well above the regional average of 20%. This policy has not only been negative for the development of the sector, but also for the State, which missed out on $4.904 billion pesos in income in 2023 due to returns. Adjusting spectrum prices to turn it into a tool of inclusion and innovation is the great challenge of the next government.

Digital infrastructure

Expanding connectivity requires teamwork. A federal digital agenda is essential to harmonize decisions between the different levels of public administration, for example, to expedite the installation of antennas and sites at the municipal level. It is also key to resort to public consultation as a tool for dialogue with the industry and to provide autonomy to sector institutions to promote long-term policies.

Regulatory simplification

The review of policy frameworks is essential to simplify regulation in the sector and eliminate potential obstacles to the development of new digital products and services.

Meaningful connectivity

To connect to 4G Mexicans who are not online today despite having coverage, the GSMA recommends eliminating specific taxes that make access to mobile services more expensive, such as the Special Tax on Production and Services (IEPS). The organization also points to the importance of ensuring efficient use of networks through schemes in which all actors in the digital ecosystem can contribute fairly and proportionally to investments in infrastructure.

“From the GSMA, years ago we pointed out that high spectrum prices cause the perfect storm in Mexico, a situation in which everyone loses: users, operators and the State,” said Lucas Gallitto, Director for Latin America, GSMA. “The next government has the possibility of dissipating this storm and promoting more and better connectivity.”

The challenges of the new government will be part of the agenda of the M360 LATAM events and the Latin American Congress on Digital Transformation (CLTD) that will take place on June 5 and 6 at the Hyatt Regency, Polanco, Mexico City. For more information and free registration, visit www.mobile360series.com/latin-america/

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About the GSMA

The GSMA is a global organization that unites the mobile ecosystem to discover, develop and deliver innovation essential for positive business environments and social change. Our vision is to unleash the full power of connectivity so that people, industry and society thrive. As a representative of mobile operators and organizations across the mobile ecosystem and adjacent industries, the GSMA makes its contribution to its members under three main pillars: Connectivity for Good, Industry Services & Solutions, and Outreach & Dissemination. This activity includes promoting public policy, addressing today's biggest societal challenges, underpinning the technology and interoperability that makes mobile connectivity work, and providing the world's largest platform that brings together the mobile ecosystem in the MWC and M360.

We invite you to learn more at gsma.com .

GSMA Latin America is the arm of the GSMA in the region. For more information in English, Spanish and Portuguese, visit www.gsma.com/latinamerica . Follow GSMA Latin America on Twitter @GSMALatam and Linkedin GSMA Latin America.