AT&T's Momentum in Mexico Has Stagnated
After doubling subscribers, AT&T Mexico's growth slowed, adding 3.8M fewer than Telcel since 2019.
AT&T Mexico entered the market through its acquisition of Nextel and Iusacell in 2015. From then to 2018, it more than doubled its number of subscribers and added more new subscribers each quarter than Telcel, the country’s dominant telecom provider. That trend ended in early 2019, and since then, Telcel has added 3.8M new subscribers, while AT&T only 1.1M.
So, what caused the slow in growth? According to Speedtest, AT&T’s overall speed and consistency score are lower than its competitors. In general, AT&T’s prices are also higher than Telcel’s.
However, the entrance of a credible competitor to the long-reigning giant has arguably been a net positive for the country. According to a 2019 statement by AT&T Mexico CEO Monica Aspe, prices went down since they entered the market by 40%.
Given what some consider to be Telcel’s unfair advantage in the market (it holds more than 65% share), a new set of regulations was passed last year by the Telecom authority of Mexico (IFT). These are meant to make it easier for Telcel subscribers to switch to other networks. However, some argue that those are insufficient to even the playing field.