Nearshore Americas
IFT spectrum

Mexico Halts Frequency Spectrum Auction, Disbands Telecom Regulator

Mexican President Claudia Sheinbaum has disbanded the Federal Telecommunications Institute (IFT) and halted its auction of 2,223 radio spectrum blocks.

The unexpected move could put Mexico at odds with its free trade partners, the United States and Canada, who might raise concerns about potential violations of USMCA rules, which mandate regulatory independence from service providers.

Despite knowing its dissolution was imminent, the IFT pushed forward with auctioning key frequency bands, including 600 MHz and AWS, angering Sheinbaum. The President called the last-minute auction an overreach of authority.

The canceled auction is a blow to 5G expansion in Mexico. Without new spectrum, operators may struggle to improve networks and meet surging demand for mobile data. Analysts warn delays could slow the projected rise of 5G expected to dominate mobile subscriptions by 2028.

High licensing fees had already deterred bidders, with some operators returning spectrum due to financial strain. Plans for a public consultation were scrapped after state intervention brought the process to a halt.

While existing spectrum licenses remain valid, Mexico can impose new obligations on telecom firms. Industry experts fear restructuring creates uncertainty, weakens investor confidence, and risks inefficiencies in managing telecommunications infrastructure.

Sign up for our Nearshore Americas newsletter:


The government defends the move, claiming it will streamline regulation. However, critics worry it could stifle competition, centralize power, and provoke legal challenges from international partners.

IFT is one of many autonomous regulatory bodies being disbanded. This decision is part of a broader constitutional reform package presented by former President Andrés Manuel López Obrador, which aims to transfer the responsibilities of these agencies back to federal government entities.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

Add comment