Fiber is one of the most important inputs for telecommunications companies due to its capacity to transmit data at high speeds, to satisfy the connectivity demand of consumers and industries. Operators in this industry have opted to deploy greater kilometers of fiber to improve internet services and develop 5G.
However, this type of telecommunications cable is a material up to 10 times more expensive than copper, which also implies higher costs for its installation, such as repair, as it requires specialized labor because it is a delicate material.
In the country, some telecommunications operators acquire this input from the United States, although there are also companies dedicated to its manufacturing in Mexico, such as Prysmian Group, but part of the materials for its manufacture are imported, so the extra cost of taxes could not be avoided. .
Alberto Arellano, director of the infrastructure unit of the consulting firm IDC, commented that applying a tariff policy against Mexico would cause problems for consumers to pay for connectivity services, and would also reduce competitiveness in the industry, because small operators would not be able to absorb in a simple way a tax to continue weaving their networks, compared to large operators such as América Móvil, AT&T or Izzi and Megacable.
“If fiber optic prices are increased due to tariff issues, it would make it unattractive for a group of investors to want to bet on Mexico and this would have a significant impact on the connectivity market, which we have seen in recent years. more players bringing with them more competition and options for consumers,” Arellano warned.
In the country, telecommunications companies avoid the 35% taxes on fiber optics by the Ministry of Economy last May. This has resulted in fixed operators increasing their prices to consumers. In 2024 alone, Totalplay, Izzi and Megacable increased their rates up to 50 pesos, but Trump’s tariff threat could significantly increase rates.
Expansión requested a position on the issue from América Móvil, but declined to comment, while AT&T and Megacable were not available.
According to the Observatory of Economic Complexity (OEC), in 2022 Mexico will be one of the nations that imports the most fiber optics worldwide.
Gabriel Navarro, CEO of Neutral Networks, a critical fiber optic infrastructure firm, explained that as a result of the Republican’s threats, some companies dedicated to the manufacture of fiber in the country, but with a view to its export or internal marketing – without detailing their names – have begun to analyze whether they will increase their production in the country or open more factories to support the demand that Mexico requires.
“The policy that Trump wants to promote is something that is monitored to avoid impacts on operations, some companies are studying the possibility of opening a factory in Mexico or in other nations where they have other agreements or where there are no tariff problems,” Navarro said. .
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