Mexico has the highest fixed internet price in Latin America

Mexicans spend up to almost 10 dollars more than other Latin American nations to acquire internet in their homes. Data from the consulting firm Statista reveal that in Mexico the average monthly fixed internet subscription amounts to 32.35 dollars, equivalent to 654 pesos. While in Peru its citizens pay 24.86 dollars, equivalent to 502.50 pesos; in Colombia 20.47 dollars, that is, 413 pesos; in Chile 21.86 which corresponds to 442 pesos; and in Brazil 21.18 dollars, equivalent to 441 pesos.

In Mexico, despite the fact that in the last 10 years the price of internet has been reduced by 52.9%, going from a cost of 742 pesos to 349 pesos, according to data from the Federal Telecommunications Institute (IFT), the country still remains within the list of countries with high rates for fixed connectivity services.

The International Telecommunications Union (ITU) has recommended that users allocate only 2% of their income to connectivity services, but in Mexico people on average invest 3.5%, almost double what is recommended, and this percentage is increases in users with lower purchasing power.

Alberto Farca, vice president of projects at Centro México Digital, attributed this situation to a lack of competition in the fixed market because there are entities where few players or even only one operate, allowing companies to set unique prices without other options for users. consumers.

This situation has been highlighted with the sentences applied by the IFT to companies such as Megacable and Televisa fixed service companies such as Izzi, considering them to have substantial power, that is, with the ability to unilaterally set prices or restrict supply in the relevant market without competitors being able to counteract that power.

For example, the IFT detected that Megacable has substantial power of fixed services in San Mateo Atenco and Zinacantepec, located in the State of Mexico; León, Guanajuato; Guadalajara and Tonalá in Jalisco; Cuautlancingo and San Pedro Cholula in Puebla, as well as in Corregidora and El Marqués in Querétaro. While Televisa detected that it had an advantage in entities such as Aguascalientes, Chihuahua, Mexico City, State of Mexico, Jalisco, Nuevo León and San Luis Potosí.

“The price of fixed broadband varies depending on the State in which we are located. There are entities where there is less competition and this directly affects internet prices, which is why Mexico remains a country with high internet rates”; Farca said.

The orography is the other factor why Mexicans face higher expenses for internet service. Industry experts have commented on several occasions that the deployment of fiber or any infrastructure in remote areas leads companies to disburse greater amounts of investment to enable connectivity services, the expenses of which end up being translated into internet prices.

Alberto Farca said that Chile has become one of the countries with the most affordable rates for the internet, thanks to the promotion of a telecommunications infrastructure law, whose framework has become the route to make the deployment of networks more efficient for both companies as well as for users.

“While in Mexico, if a fixed operator wants to place fiber, it must follow different rules depending on the municipality and this is one of the big barriers is the regulatory one because in addition to complicating the deployment, this ends up translating into prices for services such as internet. ”; said the vice president of projects at Centro México Digital.

Regulation will remain an essential point to encourage the arrival of more competitors to the fixed services market, as well as to create plans that facilitate the deployment of infrastructure and thereby reduce Internet prices.