Mexico’s leading mobile operator Telcel, a subsidiary of America Movil, has been fined MXN$1,782.6 million (approx. USD $99 million) by the Federal Telecommunications Institute (IFT) for alleged anti-competitive behavior in the distribution of SIM cards through convenience store chains.
The penalty follows a 2021 complaint from a competing telecom operator, prompting an investigation into relative monopolistic practices. According to the IFT, Telcel engaged in conduct that limited rival access to key retail distribution channels — restricting competition in the critical prepaid SIM card segment.
Mexico telecom market
Telcel, the dominant mobile operator in Mexico, faces competition from several players in the country’s telecom market. The main rivals include AT&T Mexico, the second-largest operator and a subsidiary of U.S.-based AT&T, which competes through aggressive pricing, enterprise services, and network investments.
Movistar Mexico, owned by Spain’s Telefonica, ranks third and focuses on digital services and bundling, operating primarily through a network-sharing agreement with AT&T to reduce costs.
Additionally, Altan Redes plays a unique role as a wholesale-only network provider under the Red Compartida project, offering infrastructure access to smaller operators and MVNOs (mobile virtual network operators).
MVNOs like Bait, FreedomPop, and Weex, though smaller in scale, are gaining ground by targeting specific segments with affordable, digital-first services. While Telcel continues to hold over 60 percent of the market, the competitive landscape is gradually shifting due to regulatory actions and the growing presence of alternative providers.
Telcel Pushes Back
Telcel strongly denies the accusations, calling the investigation biased and lacking substantive evidence. The company described the IFT’s ruling as arbitrary and disproportionate, and stated it will challenge the fine through all available legal mechanisms.
“Telcel considers it is an arbitrary and disproportionate fine based on competitor’s allegations and in a biased investigation, lacking evidence,” the company said in a statement.
Industry Impact
Convenience stores represent a vital distribution channel for prepaid SIM cards and mobile top-ups in Mexico’s diverse telecom landscape. Limiting access to these points of sale can significantly skew consumer choice and entrench market dominance.
The fine — one of the largest of its kind in Mexico’s telecom sector — signals that the IFT is prepared to take aggressive enforcement action to ensure open, competitive frameworks for mobile services in the country.
TelecomLead.com News Desk
