Country profile: Mexico

Mexico, as the second-largest telecom market in Latin America, is poised for significant developments amid ongoing investment and strategic shifts. Recently, MX Towers made headlines with Ardian acquiring a 50% co-control interest, bolstered by an asset swap with Movistar for 200 towers and 1,800 km of metro fibre. This move underscores a dynamic consolidation of assets within the Mexican telecom infrastructure landscape.

DigitalBridge, a prominent investor, has reportedly explored the sale of its towerco Mexico Tower Partners, signaling potential shifts in ownership amidst evolving market conditions. The country gears up for 5G deployment, presenting lucrative opportunities for new tenancies and infrastructure upgrades. Movistar’s collaboration with AT&T and Altán Redes’ restructuring further shape the competitive environment, aiming to enhance network capabilities across urban and industrial areas.

Despite Mexico’s vast population, the telecom sector faces challenges in tower density relative to subscriber demands. America Movil’s Telcel has seen off many competitors in the market, while AT&T and Movistar navigate strategic adjustments. Movistar’s transition into an MVNO, coupled with the shutdown of its 2G network and spectrum return, underscores significant operational changes and headwinds for telecom tower companies.

Altán Redes, emerging from bankruptcy protection, continues to advance its open access 4G network, facilitating connectivity for over 100 MVNOs. Macquarie’s acquisition of an 18.29% stake in Altán Redes reflects investor confidence amidst restructuring efforts. Telesites’ strategic transfer of sites to FSITES, a FIBRA entity, exemplifies ongoing regulatory adaptations aimed at fostering market competition and infrastructure expansion.

The telecom landscape in Mexico is evolving with notable towercos like American Tower and Phoenix Tower International expanding their portfolios. MX Towers, Ardian’s investment, and ongoing regulatory consultations for multi-band 5G spectrum auctions further underscore the industry’s dynamic nature. Despite challenges posed by market consolidation and regulatory complexities, Mexico remains a pivotal market for telecom investment, offering growth opportunities amidst increasing demand for enhanced connectivity and digital services.

The Mexican sector faces ongoing challenges related to political dynamics and security concerns, which impact infrastructure deployment and operational strategies. Network sharing agreements are increasingly seen as pivotal in optimizing resources and reducing costs across the diverse Mexican landscape. Despite these challenges, there remains significant potential for growth, particularly in expanding rural connectivity and enhancing service reliability