{"id":2629,"date":"2026-02-10T03:08:24","date_gmt":"2026-02-10T06:08:24","guid":{"rendered":"https:\/\/suricata.la\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/"},"modified":"2026-02-10T03:08:24","modified_gmt":"2026-02-10T06:08:24","slug":"att-slows-5g-expansion-in-mexico-due-to-high-costs","status":"publish","type":"post","link":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/","title":{"rendered":"AT&amp;T slows its 5G expansion in Mexico due to high costs"},"content":{"rendered":"<h2>Table of Contents<\/h2>\n<ul>\n<li><a href=\"#tldr-att-frena-su-expansion-5g-en-mexico-por-altos-costos\">1. TL;DR: AT&#038;T halts its 5G expansion in Mexico due to high costs<\/a>\n<\/li>\n<li><a href=\"#impacto-de-los-altos-costos-del-espectro-en-la-expansion-de-att\">2. Impact of high spectrum costs on AT&#038;T\u2019s expansion<\/a>\n<\/li>\n<li><a href=\"#comparativa-de-costos-del-espectro-en-mexico-y-el-ambito-internacional\">3. Comparison of spectrum costs in Mexico and internationally<\/a>\n<\/li>\n<li><a href=\"#porcentaje-de-ingresos-destinados-al-pago-de-derechos-por-uso-del-espectro\">4. Percentage of revenue allocated to the payment of fees for spectrum use<\/a>\n<\/li>\n<li><a href=\"#declaraciones-de-la-ceo-de-att-sobre-la-situacion-del-espectro\">5. Statements by AT&#038;T\u2019s CEO on the spectrum situation<\/a>\n<\/li>\n<li><a href=\"#afirmaciones-del-nuevo-regulador-de-telecomunicaciones-en-mexico\">6. Statements by the new telecommunications regulator in Mexico<\/a>\n<\/li>\n<li><a href=\"#estructura-de-costos-del-sector-y-su-impacto-en-la-asequibilidad-del-servicio\">7. The sector\u2019s cost structure and its impact on service affordability<\/a>\n<\/li>\n<li><a href=\"#propuestas-de-la-crt-para-mejorar-la-cobertura-movil\">8. CRT proposals to improve mobile coverage<\/a>\n<\/li>\n<li><a href=\"#retos-del-sector-de-telecomunicaciones-en-mexico\">9. Challenges in Mexico\u2019s telecommunications sector<\/a>\n<\/li>\n<li><a href=\"#impacto-de-la-decision-de-att-en-el-mercado-mexicano\">10. Impact of AT&#038;T\u2019s decision on the Mexican market<\/a>\n<ul>\n<li><a href=\"#consecuencias-para-los-consumidores\">10.1 Consequences for consumers<\/a><\/li>\n<li><a href=\"#retos-para-la-competencia-en-telecomunicaciones\">10.2 Challenges for competition in telecommunications<\/a><\/li>\n<li><a href=\"#perspectivas-futuras-para-la-expansion-5g\">10.3 Future outlook for 5G expansion<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"ai-article\">\n<h2 id=\"tldr-att-frena-su-expansion-5g-en-mexico-por-altos-costos\">TL;DR: AT&amp;T halts its 5G expansion in Mexico due to high costs<\/h2>\n<ul>\n<li>AT&amp;T has decided not to participate in the upcoming 5G spectrum auction in Mexico due to high costs.<\/li>\n<li>Spectrum costs in Mexico are significantly higher than the international average, affecting competitiveness.<\/li>\n<li>AT&amp;T\u2019s CEO has noted that the current cost structure limits the company\u2019s ability to offer more affordable rates.<\/li>\n<li>The Telecommunications Regulatory Commission (CRT) has proposed discounts in exchange for coverage, but without clear details.<\/li>\n<li>The current situation poses significant challenges for the expansion of mobile coverage in the country.<\/li>\n<\/ul>\n<h2 id=\"impacto-de-los-altos-costos-del-espectro-en-la-expansion-de-att\">Impact of high spectrum costs on AT&amp;T\u2019s expansion<\/h2>\n<p>AT&amp;T\u2019s decision to slow its 5G expansion in Mexico is largely due to the high costs of radio spectrum. According to data from the Federal Telecommunications Institute (IFT), the cost for the use of frequency bands in Mexico is between 88% and 96% higher than the international median. This means that companies like AT&amp;T must allocate a significant portion of their revenues to paying fees for spectrum use, which limits their ability to invest in infrastructure and offer competitive rates.<\/p>\n<p>In AT&amp;T\u2019s case, it is estimated that it allocates 17.1% of its annual revenues to these payments, compared with the 5.7% allocated by Telcel, Am\u00e9rica M\u00f3vil\u2019s subsidiary. This cost difference not only affects AT&amp;T\u2019s profitability, but also impacts the quality and affordability of the services it can offer its customers.<\/p>\n<p>AT&amp;T\u2019s CEO, who recently participated in Canieti\u2019s 2025 National Convention, stated that while the company is willing to acquire more spectrum and improve its services, the current cost situation is unsustainable. &ldquo;We would love to participate, but with the current cost scheme we won\u2019t,&rdquo; she said. This statement reflects the company\u2019s frustration with a regulatory environment that does not seem to take market realities into account.<\/p>\n<h2 id=\"comparativa-de-costos-del-espectro-en-mexico-y-el-ambito-internacional\">Comparison of spectrum costs in Mexico and internationally<\/h2>\n<p>Comparing spectrum costs in Mexico with those in other countries reveals a significant disparity that affects the competitiveness of local operators. In many countries, spectrum costs are lower, allowing operators to invest more in infrastructure and offer more affordable rates to consumers.<\/p>\n<p>For example, in the United States, spectrum costs are considerably lower, which has allowed companies like Verizon and AT&amp;T rapidly expand their 5G networks. In contrast, the high costs in Mexico have led AT&amp;T and other operators to reconsider their investment strategies. <\/p>\n<table>\n<thead>\n<tr>\n<th>Country<\/th>\n<th>Spectrum cost (percentage of revenue)<\/th>\n<th>Observations<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Mexico<\/td>\n<td>17.1% (AT&amp;T), 5.7% (Telcel)<\/td>\n<td>High costs limit expansion<\/td>\n<\/tr>\n<tr>\n<td>United States<\/td>\n<td>5-10%<\/td>\n<td>Lower costs allow greater investment<\/td>\n<\/tr>\n<tr>\n<td>Europe<\/td>\n<td>10-15%<\/td>\n<td>Varies by country, but generally lower<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li><em>Table showing the comparison of spectrum costs in different countries.<\/em><\/li>\n<\/ul>\n<p>This situation is further complicated by the structure of spectrum auctions in Mexico, which has been criticized for its lack of transparency and for the high associated costs. The CRT has proposed changes, but the implementation of these changes is still under discussion.<\/p>\n<h2 id=\"porcentaje-de-ingresos-destinados-al-pago-de-derechos-por-uso-del-espectro\">Percentage of revenue allocated to the payment of fees for spectrum use<\/h2>\n<p>The percentage of revenue that telecommunications companies in Mexico allocate to paying fees for spectrum use is a key indicator of the sector\u2019s financial health. In AT&amp;T\u2019s case, 17.1% of its revenue is allocated to this item, representing a considerable financial burden compared with its competitors. <\/p>\n<p>This high percentage translates into fewer resources available to invest in network expansion and service improvements. On the other hand, Telcel, which allocates only 5.7% of its revenue, has more flexibility to invest in infrastructure and offer competitive rates.<\/p>\n<p>The situation becomes even more critical when considering that other operators, such as Telef\u00f3nica, have decided to give up their spectrum licenses due to the high costs. This not only limits competition in the market, but also affects the quality of service consumers can expect.<\/p>\n<h2 id=\"declaraciones-de-la-ceo-de-att-sobre-la-situacion-del-espectro\">Statements by AT&amp;T\u2019s CEO on the spectrum situation<\/h2>\n<p>During her remarks at Canieti\u2019s 2025 National Convention, AT&amp;T\u2019s CEO emphasized the unsustainability of high spectrum costs. &ldquo;We can debate the methodology on which a cost is based, but if I put my house up for sale and I think it\u2019s the fair price, but for 15 years nobody buys it, it\u2019s expensive&rdquo;, she compared, highlighting the disconnect between the established costs and market reality.<\/p>\n<p>This statement underscores the need for a change in how spectrum prices are set in Mexico. The CEO also mentioned that the company is willing to participate in future auctions, but only if significant adjustments are made significaptive in the cost structure.<\/p>\n<blockquote>\n<p>&ldquo;It is our desire to have more spectrum to provide better services, but the way auctions are conducted has to change.&rdquo;<br \/>\n<em>AT&amp;T CEO at the 2025 Canieti National Convention.<\/em><\/p>\n<\/blockquote>\n<h2 id=\"afirmaciones-del-nuevo-regulador-de-telecomunicaciones-en-mexico\">Statements by the new telecommunications regulator in Mexico<\/h2>\n<p>The new telecommunications regulator in Mexico has stated that the cost of spectrum in the country is 7% cheaper than in previous years. However, this claim has been met with skepticism by operators, who argue that the market reality is very different. <\/p>\n<p>The IFT has proposed a discount scheme of up to 50% in exchange for coverage, but the details of this proposal have not yet been finalized. The lack of clarity in regulatory policies has led many operators, including AT&amp;T, to reconsider their participation in future auctions.<\/p>\n<p>In addition, the entry of a new regulator that is subordinate to the Executive branch has generated uncertainty in the sector. Operators are concerned about how these decisions will affect their ability to compete and expand their networks.<\/p>\n<h2 id=\"estructura-de-costos-del-sector-y-su-impacto-en-la-asequibilidad-del-servicio\">The sector\u2019s cost structure and its impact on service affordability<\/h2>\n<p>The cost structure of Mexico\u2019s telecommunications sector is a critical factor influencing the affordability of mobile services. High spectrum costs, along with other operating expenses, limit companies\u2019 ability to offer competitive rates. <\/p>\n<p>The affordability of mobile service depends not only on competition in the market, but also on regulatory and fiscal decisions that directly affect the sector\u2019s cost structure. This means that, even in a competitive market, high costs can lead to higher prices for consumers.<\/p>\n<p>The current situation poses a significant challenge for operators seeking to expand their services and improve network quality. Without changes to the cost structure, consumers are likely to continue facing high rates and limited coverage.<\/p>\n<h2 id=\"propuestas-de-la-crt-para-mejorar-la-cobertura-movil\">CRT proposals to improve mobile coverage<\/h2>\n<p>The Telecommunications Regulatory Commission has proposed several measures to improve mobile coverage in Mexico. Among these proposals is a discount scheme on spectrum costs in exchange for coverage commitments. However, the details of these proposals have not yet been finalized, which has generated uncertainty in the sector.<\/p>\n<blockquote>\n<p>&ldquo;The CRT is considering creating a discount scheme of up to 50% in exchange for coverage.&rdquo;<br \/>\n<em>CRT statements on improving mobile coverage.<\/em><\/p>\n<\/blockquote>\n<p>The implementation of these proposals will be crucial in determining whether operators will be willing to participate in future spectrum auctions. However, the lack of clarity in policies and the need for significant changes in the cost structure remain major obstacles.<\/p>\n<h2 id=\"retos-del-sector-de-telecomunicaciones-en-mexico\">Challenges in Mexico\u2019s telecommunications sector<\/h2>\n<p>Mexico\u2019s telecommunications sector faces several challenges that complicate coverage expansion and service improvements. These challenges include:<\/p>\n<ol>\n<li>\n<p><strong>High spectrum costs<\/strong>: As mentioned, spectrum costs in Mexico are significantly higher than in other countries, which limits operators\u2019 ability to invest in infrastructure.<\/p>\n<\/li>\n<li>\n<p><strong>Regulatory uncertainty<\/strong>: The arrival of a new regulator and the lack of clarity in policies have generated uncertainty in the sector, making long-term planning difficult for operators.<\/p>\n<\/li>\n<li>\n<p><strong>Unfair competition<\/strong>: Telcel\u2019s dominance in the market has created a difficult competitive environment for other operators, such as AT&amp;T and Telef\u00f3nica, which struggle to gain market share.<\/p>\n<\/li>\n<li>\n<p><strong>Technological challenges<\/strong>: The need to upgrade infrastructure to support 5G networks presents significant technical and financial challenges for operators.<\/p>\n<\/li>\n<\/ol>\n<p>These challenges not only affect telecommunications companies, but also impact consumers, who may face higher rates and limited coverage if significant changes are not made in the sector.<\/p>\n<h2 id=\"impacto-de-la-decision-de-att-en-el-mercado-mexicano\">Impact of AT&amp;T\u2019s decision on the Mexican market<\/h2>\n<h3 id=\"consecuencias-para-los-consumidores\">Consequences for consumers<\/h3>\n<p>AT&amp;T\u2019s decision to halt its 5G expansion in Mexico will have a direct impact on consumers. With less competition in the market, prices are likely to remain high and service quality may not improve. This could limit access to high-quality, affordable services for many Mexicans.<\/p>\n<h3 id=\"retos-para-la-competencia-en-telecomunicaciones\">Challenges for competition in telecommunications<\/h3>\n<p>AT&amp;T\u2019s exit from the race for 5G spectrum could further consolidate Telcel\u2019s position in the market. This poses a significant challenge for competition in the sector, as fewer players in the market can lead to less innovation and higher prices.<\/p>\n<h3 id=\"perspectivas-futuras-para-la-expansion-5g\">Future outlook for 5G expansion<\/h3>\n<p>Without changes in the cost structure and in regulatory policies, the expansion of the 5G network in Mexico could be seriously limited. The lack of investment in infrastructure and uncertainty in the market could delay the arrival of high-quality 5G services to Mexican consumers.<\/p>\n<p>The current situation calls for an in-depth review of the policies and regulations governing the telecommunications sector in Mexico, to ensure a competitive environment that benefits both operators and consumers.<\/p>\n<\/div>\n<p><!--yoast-refresh--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR: AT&amp;T halts its 5G expansion in Mexico due to high costs AT&amp;T has decided not to participate in the upcoming 5G spectrum auction in Mexico due to high costs. Spectrum costs in Mexico are significantly higher than the international average, affecting competitiveness. AT&amp;T\u2019s CEO has noted that the current cost structure limits &#8230; <\/p>\n<div><a href=\"https:\/\/suricata.la\/att-frena-su-expansion-5g-en-mexico-por-altos-costos\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_metadesc":"","content_central_editor_notes":"","yoast_description":"","footnotes":""},"categories":[48],"tags":[1132,19,1133,802],"class_list":["post-2629","post","type-post","status-publish","format-standard","hentry","category-noticias","tag-5g-expansion","tag-mexico","tag-spectrum-costs","tag-telecommunications","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AT&amp;T slows its 5G expansion in Mexico due to high costs - Suricata Cx<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AT&amp;T slows its 5G expansion in Mexico due to high costs - Suricata Cx\" \/>\n<meta property=\"og:description\" content=\"TL;DR: AT&amp;T halts its 5G expansion in Mexico due to high costs AT&amp;T has decided not to participate in the upcoming 5G spectrum auction in Mexico due to high costs. 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Spectrum costs in Mexico are significantly higher than the international average, affecting competitiveness. AT&amp;T\u2019s CEO has noted that the current cost structure limits &#8230; Read More","og_url":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/","og_site_name":"Suricata Cx","article_published_time":"2026-02-10T06:08:24+00:00","author":"Martin Weidemann","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Martin Weidemann","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/#article","isPartOf":{"@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/"},"author":{"name":"Martin Weidemann","@id":"https:\/\/suricata.la\/#\/schema\/person\/572122124112b0679d624353d86e028f"},"headline":"AT&amp;T slows its 5G expansion in Mexico due to high costs","datePublished":"2026-02-10T06:08:24+00:00","mainEntityOfPage":{"@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/"},"wordCount":1648,"publisher":{"@id":"https:\/\/suricata.la\/#organization"},"keywords":["5G expansion","mexico","spectrum costs","telecommunications"],"articleSection":["Noticias"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/","url":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/","name":"AT&amp;T slows its 5G expansion in Mexico due to high costs - Suricata Cx","isPartOf":{"@id":"https:\/\/suricata.la\/#website"},"datePublished":"2026-02-10T06:08:24+00:00","breadcrumb":{"@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/suricata.la\/en\/att-slows-5g-expansion-in-mexico-due-to-high-costs\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/suricata.la\/en\/isps-2\/"},{"@type":"ListItem","position":2,"name":"AT&amp;T slows its 5G expansion in Mexico due to high costs"}]},{"@type":"WebSite","@id":"https:\/\/suricata.la\/#website","url":"https:\/\/suricata.la\/","name":"Pagoralia","description":"Plataforma de atenci\u00f3n omnicanal.","publisher":{"@id":"https:\/\/suricata.la\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/suricata.la\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/suricata.la\/#organization","name":"Pagoralia","url":"https:\/\/suricata.la\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/suricata.la\/#\/schema\/logo\/image\/","url":"https:\/\/www.suricata.la\/wp-content\/uploads\/2022\/10\/Pagoralia-Fav.png","contentUrl":"https:\/\/www.suricata.la\/wp-content\/uploads\/2022\/10\/Pagoralia-Fav.png","width":1080,"height":1080,"caption":"Pagoralia"},"image":{"@id":"https:\/\/suricata.la\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/suricata.la\/#\/schema\/person\/572122124112b0679d624353d86e028f","name":"Martin Weidemann","description":"Martin Weidemann is a specialist in digital transformation, telecommunications, and customer experience, with more than 20 years leading technology projects in fintech, ISPs, and digital services across Latin America and the U.S. He has been a founder and advisor to startups, works actively with internet operators and technology companies, and writes from practical experience, not theory. 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