The beginning of a new digital battle
Mexico is preparing for full 5G expansion, and Telefónica Movistar Mexico stands right in the middle of it.
The Spanish telecom giant, long considered the country’s second‑largest operator, now faces a storm of legal and regulatory controversies involving licenses, competition, user privacy, and an increasingly tense relationship with the Federal Telecommunications Institute (IFT).
While AT&T Mexico builds its own 5G network, Movistar pursues shared‑network deals and spectrum leasing agreements.
But regulatory pressure from the IFT and complex interconnection contracts are raising alarm across the market, forcing industry lawyers to question whether the playing field is still fair.
IFT vs. Movistar: licenses under scrutiny
Spectrum renewals on the edge
To deploy 5G, carriers must obtain or renew radio‑spectrum concessions.
In 2024, IFT signaled it would review Telefónica’s contract to lease spectrum from AT&T, citing possible market concentration and monopoly risk.
Movistar argues the arrangement is lawful and efficient, allowing better coverage without redundant infrastructure.
Competition or political punishment?
Legal experts believe the review is as much political as technical.
The IFT’s new leadership wants tighter control of national resources and may bar Telefónica from bidding in future auctions.
If that happens, Movistar is prepared to appeal to federal courts in a battle that could redefine 5G competition in Mexico.
Privacy and data protection: the invisible front line
The leap to 5G also brings increased responsibility: protecting the flow of millions of real‑time data packets.
Beyond the physical network, the real concern is how Movistar manages personal and corporate information.
A recent leak of corporate customer data placed the operator back under the microscope.
Critics point to weak encryption and outdated privacy statements that may fall short of Mexico’s Federal Law on Personal Data Protection.
Although Telefónica implemented corrective actions, the incident proved that 5G leadership depends as much on legal compliance as on technical innovation.
AT&T and the interconnection paradox
Business deal or regulatory trap?
Since 2019, Movistar Mexico has rented portions of AT&T’s network to save infrastructure costs.
Now that 5G is at stake, the contractual “technology‑upgrade clause” has turned into a headache: AT&T demands new exclusivity conditions and higher leasing fees.
Competition lawyers warn that this could become a case of unfair competition, keeping Movistar dependent on a rival’s infrastructure.
What began as an alliance could soon end up before commercial tribunals unless the IFT steps in as mediator.
Risk of a new digital monopoly
Attorney Luis F. Sánchez summarizes the problem: “If the same network controls both access and competition, Mexico could repeat the Telmex model. 5G must be built on transparency, not hidden clauses.”
Cybersecurity and compliance
The 5G era connects billions of devices, exponentially raising the surface for cyberattacks.
Mexican law now requires operators to adopt auditable cybersecurity and breach‑notification policies, yet few carriers fully comply.
Movistar Mexico is currently under the combined scrutiny of IFT and INAI (the privacy watchdog), which are drafting new rules for 5G operators on consent, encrypted storage, and prompt disclosure of incidents.
The fines for non‑compliance can reach millions of pesos — but the real risk is reputational.
The 5G expansion and international law
Mexico’s 5G framework must align with OECD and UN standards on privacy and competition.
As a Spanish subsidiary, Telefónica also follows Europe’s GDPR, adding another compliance layer for cross‑border data transfers.
This dual system forces the company to conduct internal audits and new consent mechanisms for Latin American users.
Analysts believe 2025 will be decisive: if Telefónica secures license renewals and a fair contract with AT&T, it could export its model elsewhere in Latin America; if negotiations fail, Mexico might establish a precedent for how 5G regulation can curb private operators.
Conclusion: the legal crown of 5G
Telefónica Movistar Mexico stands at a delicate crossroads.
Between IFT oversight, AT&T dependency, and strict data‑protection obligations, its future will be determined not only by antennas but by courts and contracts.
5G is more than a technological race — it’s a legal one.
The next telecom giant won’t be the fastest network, but the one capable of navigating Mexico’s regulatory storms without losing signal.