Telefonica is in exclusive talks to sell its Mexican operations to Beyond ONE, the Dubai-based owner of Virgin Mobile Mexico, as part of a strategy to reduce exposure in less profitable Latin American markets.
The potential deal, valued at approximately €520 million ($609 million), reflects Telefonica’s shift under new CEO Marc Murtra to focus on core markets — Spain, Germany, Brazil, and the UK— where returns are stronger, Reuters news report said.
Telefonica Mexico
Telefonica has mobile market share of 18.9 percent in 2024 vs 18.2 percent in 2023.
Telefonica Mexico’s mobile business revenues were 1,286 million euros in 2024, registering 2.5 percent drop, negatively impacted by lower handset sale revenues, lower B2C prepaid revenues and exchange rate effects, partially compensated by higher postpaid revenues and B2B revenues.
Telefonica Mexico’s operating income reached 10 million euros in 2024, compared to operating income of 3 million euros in 2023, due to lower operating expenses and lower depreciation and amortization in the period, offset in part by lower revenues.
Telefonica Mexico had 1,808 employees at the end of 2024 as compared with 1,747 in 2023.
The transaction may face delays due to regulatory uncertainty linked to Mexico’s proposed creation of a new antitrust commission. Telefonica has already agreed to divest its operations in Argentina, Uruguay, and is pursuing sales in Chile and Ecuador.
Mexico’s mobile market
America Movil’s Telcel dominates Mexico’s mobile market with over 56–60 percent market share by early 2025, serving around 83 million mobile lines, while AT&T Mexico holds approximately 23 million users and Movistar (Telefonica) about 21 million.
Telcel is investing heavily in infrastructure, focusing on fiber-to-the-home deployment to over 17 million households (achieving about 84 percent fiber among its broadband customers) and rolling out 5G services across more than 100 cities, as part of its $6.7 billion capex plan for 2025 (down from $7.1 billion in 2024) aimed at expanding 5G and fixed‑line networks, Reuters news report said.
AT&T Mexico, the third‑largest wireless operator with roughly 13–15 percent market share, remains focused on extending its 5G service beyond key urban centers. While AT&T had previously returned some spectrum blocks due to high costs, it continues to invest in improving coverage and service quality, despite overall Latin America segment revenue declining in early 2025..
Telefonica has shifted to an asset‑light model in Mexico, relying on wholesale access agreements (notably with AT&T) rather than direct network investment.
Other fixed‑broadband and cable players like Izzi, Megacable, Telmex, and Totalplay together invested around MXN 38 billion (~ US $1.9 billion) in 2024 in fiber infrastructure, reaching nearly 600,000 km of fiber and coaxial networks to support residential and enterprise connectivity.
Additionally, Altan Redes’ Red Compartida, a wholesale mobile network, continues attracting public‑private and foreign investment, serving numerous MVNOs and supporting nationwide coverage in underserved regions.
While political and regulatory uncertainty persists due to the abolition of IFT and the creation of new agencies (including a proposed competition commission), operators are moving forward with ambitious 5G and fiber expansion plans to meet rising consumer demand and digital service needs.
Baburajan Kizhakedath
