Unlocking Mexico’s digital potential

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Mexico’s digital transformation is accelerating. Ensuring pro-competition regulations in telecommunications, advancing digital government and strengthening digital skills  can  unlock productivity and inclusion across the country.

By Alessandro Maravalle and Alberto Gonzalez-Pandiella, OECD Economics Department

También disponible en español: Aprovechar el potencial digital de México

Introduction

In 2018, Roma, a Mexican film about a young domestic worker living in 1970s Mexico City, reached global audiences through digital streaming and won three Academy Awards. This success also illustrates how digitalisation creates unprecedented opportunities. Similar potential exists across Mexico’s economy. Yet for many businesses and households the digital tools to make it possible remain out of reach. Strengthening digitalization could unlock economic growth and productivity in Mexico, which has stagnated for more than two decades (OECD, 2026). Making that happen requires regulations that foster competition in telecommunications, advancing digital government and targeted programmes to support skills and SMEs adoption.   

Strengthening the regulatory framework to increase competition and boost investment

Regulations that promote competition can help attract private investment and ensure fair competition, helping to improve affordability and quality. A key building block of a pro-competition framework is an independent regulator, as they are associated with stronger investor confidence, lower prices and higher access to telecommunication services. A recent reform in Mexico has dissolved the independent telecommunications regulator (IFT) and transferred its functions to a new Telecommunications Regulatory Commission (CRT), with reduced autonomy from the government. While the reform aimed to streamline governance, the reduction in regulatory independence has raised concerns about the future effectiveness and credibility of oversight in the sector.

Introducing a more transparent and merit‑based appointment process of the members of the CRT and ensuring appropriate budgets, could help restore trust and promote private investment in the sector. Beyond institutional governance, the cost of spectrum represents another binding constraint on network expansion. Mexico’s spectrum fees are among the highest in the OECD (Figure 1), largely due to elevated annual charges. This discourages entry, limits network expansion and leaves large portions of spectrum unused. Reforming spectrum pricing by shifting towards lower annual fees and greater reliance on transparent auctions would reduce barriers to investment.

Advancing digital government and trust

Mexico lags the OECD average in digital government (Figure 2), but recent reforms , notably the consolidation in 2025 of digital policy under the Agency for Digital Transformation and Telecommunications (ADTT), have created a good momentum to make reform happen.  Backed by strong political support and strengthened governance framework, the ADTT now leads efforts to simplify and digitalise administrative procedures across all levels of government. Early results are promising, with federal procedures  becoming faster and less costly for users. Flagship initiatives like the One-Stop Shop for investors and the Digital Window for Investors could significantly reduce red tape and improve the investment climate.

Nevertheless, significant challenges remain. Effective coordination across government levels, uneven local capacity, uncertainty over availability of adequate funding over the future,  and low interoperability across IT systems all risk slowing progress. Sustained investment in digital skills, infrastructure and intergovernmental coordination will be essential to maintain reform momentum and achieve lasting results.

Strengthening digital skills is also crucial, as limited basic digital competencies are among the main barriers to accessing and effectively using digital technologies. Ensuring a stronger focus on digital skills in education and training programmes will better equip Mexican to make the most out of digital tools.

Beyond households, targeted policies are also needed to accelerate digital adoption by firms. Targeted digital support programmes, combining digital skills training, targeted funding and advisory services  can help SMEs increase their use of digital technologies. Since these firms provide over half of Mexico’s economic output and most jobs, helping them go digital could deliver large benefits for the economy.

References

OECD (2026), OECD Economic Surveys: Mexico 2026, OECD Publishing, Paris, https://doi.org/10.1787/8a7c0ac4-en.