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19 May 2025

The ISP market in Mexico

The ISP market in Mexico
Mexico’s Internet Service Provider (ISP) industry plays a critical role in supporting the country's digital transformation. With increasing demand for high-speed connectivity from individuals, businesses, and public institutions, the ISP sector has seen significant growth and evolution in recent years.

The Mexican ISP market is composed of a mix of large national operators and smaller regional players. The dominant companies include Telmex (a subsidiary of América Móvil), Totalplay, Izzi Telecom, and Megacable. Telmex, the traditional market leader, still holds a substantial share of the broadband market, especially in fixed-line services. However, competition has intensified as new entrants and regional ISPs focus on customer service, fibre-to-the-home (FTTH) deployment, and faster internet speeds.

Urban areas like Mexico City, Monterrey, and Guadalajara have relatively strong internet infrastructure, including access to high-speed fibre-optic services. Many rural and remote areas still face significant gaps in coverage and quality. According to recent data from the Federal Telecommunications Institute (IFT), only about 65–70% of the population has fixed broadband access, with a notable digital divide between urban and rural regions.

The Mexican government and private sector have launched initiatives aimed at expanding coverage. Programmes like “Internet para Todos” (Internet for All), a government-backed project, aim to deliver affordable internet to underserved communities using a combination of fibre networks, satellites, and mobile infrastructure. Another major driver of internet access is Mobile Broadband, especially in areas where fixed-line service is lacking. The rollout of 4G and early 5G networks has expanded access, with companies like Telcel, AT&T, and Movistar competing for mobile subscribers. Mobile internet penetration now exceeds 90%, reflecting the growing reliance on smartphones for connectivity.

ISPs navigate regulatory complexities, infrastructure costs, and cybersecurity concerns, as well as the issue around affordability for low-income users, even as prices have gradually decreased over the past decade. Looking ahead, demand for faster and more reliable internet will only grow with the rise of streaming, remote work, online education, and cloud computing. The Mexican ISP industry is responding with investments in fibre, edge infrastructure, and wireless innovation, helping to bridge the digital divide and support a more connected future.

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