YOU ARE AT:5GMexico to reach 87 million 5G subscribers by 2030: GSMA

Mexico to reach 87 million 5G subscribers by 2030: GSMA

GSMA also estimates that 5G networks will cover 86% of Mexico’s population by 2030

5G subscribers in Mexico are expected to reach 87 million by 2030, up compared to 16.9 million in 2025, according to a report by telecom association GSMA.

The GSMA report showed that 5G penetration in the Mexican market is expected to reach 13% by 2025 while it would expand to 62% by 2030.

GSMA also noted that 5G networks will cover 86% of Mexico’s population by 2030, up from 54% in 2025.

“In Mexico, the annual rights for the use of spectrum are a major barrier to 5G deployment. The annual rights are quotas set each year by the legislature and represent 85% of the total cost of spectrum. Annual royalty payments have generally risen above the country’s inflation, while the sector’s income has been either flat or declining,” the GSMA said.

“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 new technologies,” GSMA added.

In January, local telecom regulator IFT had approved the launch of a public consultation to put together an auction of 330 megahertz of additional low and mid-band spectrum. In total, the regulator aims to award 330 megahertz of spectrum, of which 90 megahertz corresponds to low bands and 240 megahertz to mid-bands. The 5G auction is expected to happen this year, according to previous reports.

IFT said it plans to offer 70 megahertz in the 600 MHz band (614-698 MHz), 50 megahertz in the 3.3 GHz band and 90 megahertz in the L band (1.427-1.518 GHz), all of which are conducive for the development of 5G services.

The IFT also says that it has surplus spectrum available that it could include in the spectrum auction. These include 20 megahertz at 800 MHz and another 20 megahertz at 850 MHz, 40 megahertz in the 2.5 GHz band, 10 megahertz in the AWS band (1.700-2.100 GHz) and up to 80 megahertz in the PCS band (1.800-1.900 GHz).

Local operator Telcel, owned by telecom group America Movil, launched commercial 5G mobile services in February 2021.By the end of 2022, the operator’s 5G network covered around 100 cities in Mexico. Telcel already owns 100 megahertz of spectrum in the 3.5 GHz band, after it acquired these frequencies from local operators Telmex and Axtel.

Rival operator AT&T Mexico is offering its 5G services in various cities across the country. The operator’s 5G services are active in Mexico City, Guadalajara, Monterrey, Tijuana, Mexicali, Ciudad Juárez, Mazatlan, Ciudad Obregon, Navojoa, Guasave, Ensenada, Puerto Penasco Guamuchil, Hemosillo, Culiacan, Saltillo, Torreon and Morelia.

AT&T had initially launched 5G services in Mexico in December last year using spectrum in the 2.5 GHz band.

Movistar, which initially launched 5G services in Ciudad de Mexico, Culiacan and Hermosillo, expected to provide 5G connectivity in over 30 cities across the country by March 2023.

Movistar is using AT&T’s network infrastructure for the provision of 5G in Mexico. Both telcos had inked a network infrastructure-sharing agreement in 2019.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.