The Business Roundtable (BRT) has called for reform of the spectrum fee structure in Mexico as part of the six-year review of the USMCA.
The aim would be to bring this structure into line with international standards in order to lower fees.
Additionally, the BRT proposed reestablishing an independent telecommunications regulator to ensure that U.S. companies are not disadvantaged in the Mexican sector.
Spectrum fee structure in Mexico
The Mexican spectrum fee system requires operators to pay two separate components: an initial payment during the auction process when obtaining a spectrum bid and an annual fee to maintain their right to the spectrum for the duration of the license.
According to the former Mexican regulator, the IFT, high and discriminatory spectrum fees have been shown to hinder competition, coverage, and investment.
According to the BRT, Mexico has one of the highest spectrum costs, between 88% and 96% above the international benchmark, which hinders the country’s digital transformation.
The USTR identified these annual spectrum fees as a significant trade barrier that must be eliminated. Pursuant to Article 18.17.2 of the USMCA, Mexico’s regulatory decisions and procedures in the field of telecommunications, including those related to spectrum, must be impartial to market participants.
Unfortunately, the BRT criticized Mexico for continuing to move in the wrong direction in telecommunications.
State-owned companies
Contrary to the provisions of Chapters 18 and 22 of the USMCA, a constitutional reform implemented in October 2024 eliminated the IFT as an independent body. Instead, regulatory functions were transferred to a new superintendency, which is subject to politicization.
Since then, this shift has already had clear effects. On the one hand, Mexico allows state-owned companies that offer internet services, such as the CFE, to operate as monopolies. As a result, competition is limited and the scope for action by private U.S. companies is reduced.
In addition, the new Telecommunications and Broadcasting Law, passed in July 2025, introduced a significant change. State-owned companies can now hold both commercial and public telecommunications licenses simultaneously.
Thus, companies such as CFE have access to public subsidies that are not available to the private sector. According to the BRT, this undermines the principle of competitive neutrality in the market.