4G Technology Accounts for Over Three-Fourths of Mexico’s Mobile Lines

According to Counterpoint estimates, 4G represented 77% of the total active mobile lines in Mexico by 2025, becoming the backbone of the country’s wireless ecosystem. Telcel, the leading operator, had 68% of the active lines on 4G technology. Telcel states that its 4G network has the widest geographic footprint in the country, currently covering over 68% of the Mexican localities and offering speeds of up to 20 Mbps. Telcel has invested the most in network expansion in recent years, increasing capital expenditure by 21.5% between 2020 and 2023, enabling near-ubiquitous 4G coverage across both rural and urban areas. The company has deployed 4G on key spectrum bands, including AWS (1700/2100 MHz), 700 MHz, 850 MHz and 1900 MHz, to balance coverage and capacity. 4G Advanced network GigaRed 4.5G was also launched in 2018. The rollout improved Mexico's 4G ecosystem by using carrier aggregation to boost speed and capacity on existing spectrum, while serving as a critical bridge to future 5G deployment. Furthermore, in Mexico, 74% of the total smartphones sold between 2018 and 2025 were 4G, according to Counterpoint Research’s Global Handset Model Sales Tracker.

5G Technology Expansion Constrained by Auction Delays and High Spectrum Cost Pressure

The 5G technology is gradually expanding its coverage in Mexico, but it is mainly concentrated in major cities like Mexico City, Monterrey and Guadalajara. 5G represented 16% of total active mobile lines by 2025, with Telcel having 22% of its active lines on this technology. The 5G infrastructure rollout has been slow due to high spectrum costs and delayed 5G auctions. The change of the telecom regulator from the Federal Telecommunications Institute (IFT) to the Comisión Reguladora de Telecomunicaciones (CRT) under the Agencia de Transformación Digital Telecomunicaciones (ATDT) in July 2025 further delayed the spectrum auctions. Mexico has not yet completed a dedicated 5G spectrum auction for mobiles, which has limited the rollout. High spectrum costs have further discouraged operators from acquiring additional spectrum. Thus, the market fosters prepaid, and many Chinese OEMs focus on gaining share by offering lower-priced 4G devices, aligning with strong consumer preference for affordable 4G services.

3G Technology Nears Phase-Out While 2G Technology Continues for Essential Use

According to Counterpoint estimates, only 7% active lines in Mexico are on 3G and lower technology, and it is declining rapidly. Operators and regulators are phasing it out and refarming its spectrum for 4G and 5G technologies. The 2G technology will not be phased out completely as it still provides the broadest coverage and is widely used for GPRS services.

Price-Sensitive Market Drives Prepaid Dominance and Intense Value Competition

By 2025, 85% of the lines in Mexico were prepaid, driven by an average wage of $953 per month, which makes most consumers price-sensitive. In this type of environment, prepaid would naturally be popular as it allows users to pay only for what they need or can afford. Considering a 30-day prepaid plan, Movistar emerges as the best plan provider, offering the lowest cost among all four operators. It offers 10GB of internet data, 16 apps with unlimited access (7 social and 9 additional apps), such as WhatsApp and Instagram (refer to the table below). Besides, Movistar is the only one offering Perplexity Pro free for 3 months and 2 apps (TikTok and YouTube), along with gaming apps PUBG and FREE FIRE in a monthly plan. All the social networking and additional apps offered by different operators in their plans have unlimited access.

Regulator-Enforced Network Sharing Among Operators Aims to Target Coverage Gaps

Telcel has the widest coverage in Mexico, while users of AT&T and Altan Redes/BAIT often face signal issues, especially in areas without their own networks. By June 2024, 3,479 users filed complaints on the Soy Usuario platform, making up 43.3% of total reports. To fix this gap, the IFT introduced a new regulation on November 6, 2024, requiring Telcel to share its network in areas where other operators have limited access, for five years through a wholesale service called Guest user (usuario visitante). However, it may discourage Telcel from investing further and reduce the need for AT&T and Altan Redes/BAIT to expand.

Movistar had announced the extension of its agreement to use the AT&T network until 2030. This extends an original eight-year agreement signed in 2019 as part of a network sharing strategy under which it migrated all of its traffic to AT&T’s network after returning its spectrum to the federal government in 2022. This agreement allows Movistar to use AT&T’s 3G, 4G and 5G infrastructure to expand coverage and grow market share for both companies. In 2021, Movistar, AT&T and Telcel also signed a “social roaming” agreement with Altan Redes/BAIT to improve rural connectivity. As a result, AT&T’s network has helped Movistar sustain over 21 million active subscribers.

Mandatory SIM Registration and Network Sharing Reshape Market Structure

In this prepaid-dominated market, a key shift is the mandatory SIM registration policy effective January 9, 2026, which requires all users to link their numbers with Clave Única de Registro de Población (CURP) with a verified photo ID by June 30, 2026. The CURP is Mexico’s universal personal identification code, assigned to every citizen and legal resident. However, enforcement may face challenges due to the availability of pre-registered SIMs in informal markets, creating a potential loophole. This rule applies to all operators. Overall, the market will move towards a more secure and regulated ecosystem, but execution challenges will remain in the near term.

In Mexico, regulator-driven network sharing obligations are relatively stringent, forcing dominant players like Telcel to provide access to competitors such as AT&T and Altan Redes/BAIT. While this helps close coverage gaps, it strains Telcel’s network capacity as additional traffic from external users flows in, impacting service quality and experience for its existing user base, especially in already congested or high-demand areas.

Future Outlook

Mexico’s market is expected to see steady YoY growth in active lines, driven by its strong prepaid base. Prepaid will continue to dominate, while 4G remains the core network, with 5G technology expanding gradually. Over time, 3G technology will be fully phased out, with its spectrum refarmed into 4G and 5G technologies, while 2G technology will continue in use for essential GPRS services and will not be phased out completely.