Telcos: Consumer Rights vs. Investment Incentives
Starting May 8, the Senate will launch discussion forums on the government’s ambitious legislative telecommunications law. This process was paused only after public backlash erupted over the proposal to grant the government the power to censor digital platforms, forcing the issue into the spotlight.
Mexico’s telecom overhaul promises a better era for consumers—on paper. The potential good news: the law promises real, tangible gains for users. Phones tied to postpaid plans must now come unlocked from day one. Forced contract terms? Banned. Carriers can’t dangle loyalty perks to keep you tied down, nor chase you for 60 days if you jump ship to another provider. These changes – if implemented – could give consumers the mobility and clarity they’ve in part been denied.
But there’s a catch: when it comes to consumer protections, the reform fragments regulatory authority. The new Digital Transformation and Telecom Agency takes over service quality and spectrum oversight. Meanwhile, PROFECO—Mexico’s consumer watchdog—will now be handling complaints, monitoring contract compliance, and sanctioning providers. The one agency with actual expertise on the matter, the IFT, is disappearing, boxed out of the game it helped regulate.
All of this is happening in a market still dominated by Telcel, which holds a 70% revenue share in mobile. Without real institutional muscle and independence, consumer rights risk becoming just another section of the law that looks great in press releases but gets quietly ignored in practice. The rhetoric is promising, but delivery will determine if this is a true reform or window dressing.
Also, bear in mind Mexico’s mobile costs have come down, and are now cheaper than in most other OECD countries. According to the OECD, between 2013 and 2022, mobile data prices in Mexico dropped by about 70%, mostly following global trends, but also helped by greater competition and regulatory changes in the sector.
At the same time, the law also needs to recognize that long-term investment in infrastructure—especially in high-capex sectors like telecom—requires a stable framework where established carriers can earn a fair return on capital – without exploiting the consumer nor hampering fair competition. With so many powerful groups in the mix and seeking to influence the legislation—the government, Morena, Televisa, AMX, Grupo Salinas, AT&T, Wal-Mart and USMCA concerns among others—it will be no easy feat balancing all the various vested interests, and prioritizing what is right for the consumer.
Mexico’s 40-Hour Week: Great Reform, Give It Five Years
After years of stagnation, the long-awaited push to shorten Mexico’s workweek is finally moving—but it’s a marathon, not a sprint. President Sheinbaum confirmed the shift to a 40-hour week will be phased in slowly, reaching full implementation by 2030. The goal is to expand labor rights without destabilizing small businesses already under pressure.
Mexico remains one of the most overworked countries in the world. With 2,200 hours clocked annually per worker, the 40-hour week may be years away—but at least it’s now officially on the agenda.
Currently, Mexican law allows a six-day, 48-hour schedule, which is among the longest in the OECD. Under the new plan, workers will eventually gain an extra day off, though it’s still unclear whether this will come via shorter workdays or an additional rest day. Either way, it would mark the most significant labor reform since 1917.
Still, the rollout will be cautious. Sheinbaum’s government is prioritizing consensus on the matter, with national forums scheduled for June and July. Employers, unions, and academics will weigh in. Officials insist productivity won’t suffer, but employer groups aren’t convinced.
COPARMEX has voiced serious concerns. They argue that many businesses could be forced to shut down or pushed to the informal side of the economy without tax incentives or flexible scheduling. The stakes are high with over half of Mexico’s workforce already off the books.
Sheinbaum’s strategy reflects that tension. A fast rollout could energize her base but risk rattling investors in an uncertain economy. A slow path preserves stability but risks losing momentum. The administration’s stance is to favor deliberateness over disruptiveness.
Sovereignty, Not for Sale: Sheinbaum Brushes Off Trump’s Troop Offer
Claudia Sheinbaum has again chosen restraint over escalation in response to Donald Trump’s latest comments. In a now-confirmed call between the two leaders, Trump floated the idea of sending U.S. troops into Mexico to help fight drug cartels. Sheinbaum’s reply was unequivocal: information-sharing, yes; but no to foreign boots on Mexican soil. “We can share information,” she said. “But we will never accept the presence of the U.S. military in our territory.”
Trump, unsurprisingly, didn’t let it go. Speaking to reporters over the weekend, he claimed Sheinbaum rejected the offer out of fear. “She’s so afraid of the cartels she can’t even think straight,” he said, calling her “a lovely woman”—his usual cocktail of insult and backhanded praise. Sheinbaum, for her part, refused to engage. “It’s not worth it,” she said Monday, emphasizing that U.S.-Mexico relations remain “very good” and that disagreements should be handled privately, not through the press.
Her strategy is clear: avoid becoming a foil in Trump’s escalating rhetoric while safeguarding Mexico’s trade advantages in a turbulent global economy. So far, the strategy continues to work. Just days ago, Mexico secured a key exemption from new U.S. auto tariffs—a reminder that Sheinbaum’s understated approach is yielding real-world gains.
But the security issue isn’t going away. Trump put fentanyl and cartel violence front and center in his campaign narrative, ramping up calls for hardline measures and blaming Mexico for the crisis. His January directive to expand military activity at the border was just the beginning. Proposals to designate cartels as foreign terrorist groups and intensify surveillance have only added pressure on Mexico to act on U.S. terms.
Sheinbaum is holding her ground. Under her security strategy, she continues to showcase arrests and drug seizures, breaking with her predecessor’s “hugs, not bullets” philosophy. In a rare alignment, she welcomed Trump’s vow to clamp down on gun trafficking from the U.S., calling it a “historic” step.
Bench of Suspicion: Mexico’s Judicial Election Gets a Rogue’s Gallery
With just weeks before Mexico’s first-ever judicial elections, congressional leaders have launched a high-stakes challenge to the integrity of the process. The Senate and the Chamber of Deputies seek to disqualify 26 candidates for judicial posts, citing criminal investigations, conflicts of interest, and academic shortcomings.
Of those flagged, 18 face ongoing federal probes for serious crimes, including organized crime, sexual assault, abuse of authority, and forced disappearance. Some even have outstanding arrest warrants. Others previously served as legal counsel to cartel figures, raising questions about impartiality and suitability for the bench.
The remaining eight failed to meet the constitutional academic standard, with university GPAs falling below 8.0. Lawmakers emphasized that the grade threshold does not symbolize a baseline measure of ethical and professional readiness for a judiciary that will now answer directly to the public.
Despite the gravity of the findings, electoral authorities remain divided. Congress wants immediate disqualifications, while electoral officials argue challenges should be resolved after the vote. The result is an institutional deadlock and growing frustration from lawmakers who believe vetting bodies failed to enforce clear rules. Lawmakers are pressing for urgent action, warning that these candidates fail to remain and risk undermining the very reform meant to restore trust in the judicial system.
The stakes could not be higher, with 881 positions up for popular vote. If these 26 candidates make it to the ballot unchecked, the credibility of the entire process may hang in the balance.
Clock Ticking on Plan C: Big Reforms, Few Results
Mexico’s latest legislative session was wrapped up with a celebration, but it was not completed. Lawmakers hailed a wave of constitutional reform, yet much of the groundwork needed to turn those changes into real policy remains unfinished. Over half of the so-called Plan C reforms, championed by López Obrador and President Sheinbaum, are still in limbo.
Of the 17 amendments passed since February 2024, only a handful are backed by secondary legislation. Eight remain entirely unregulated, and five more face looming deadlines. Among those stalled are major reforms on national security, Indigenous rights, public salaries, and passenger rail. Even Sheinbaum’s own reforms are behind schedule—three out of four lack the legal framework required to take effect.
An extraordinary session in June or July may revive momentum, but expectations are modest. Lawmakers plan to tackle just three items: security legislation, a controversial telecommunications overhaul, and new rules on forced disappearances. The rest will have to wait.
Contact:
Gilberto García
Partner and Head of Intelligence
gilberto.garcia@miranda-partners.com
Laura Camacho
Executive Director Miranda Public Affairs
laura.camacho@miranda-partners.com
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