The future of internet connectivity in Mexico is fiber, and consumers are leading the charge. A revolution is underway, and it's all about speed!
Mexican internet service providers (ISPs) are in a race to upgrade their networks, with Telmex, Totalplay, and Megacable taking the lead. While Telmex holds a significant market share, its rivals are gaining ground, especially in terms of net additions and speed.
Our analysis of Ookla Speedtest data reveals an exciting trend: Mexican consumers are embracing faster internet speeds, with a notable shift towards tariffs exceeding 100 Mbps. This transition is most evident among Totalplay's customer base, showcasing their appetite for high-speed connections.
But here's where it gets controversial: while fiber connections enhance the user experience for activities like online gaming and video calling, the benefits are often hindered by outdated Wi-Fi routers. A significant portion of Mexican households still rely on legacy Wi-Fi equipment, creating a bottleneck in the home network.
Key takeaways from our analysis:
- Leading fiber ISPs, Totalplay and Megacable, consistently gain customers, with growth rates of 3.3% and 2.8% respectively. Telmex follows with 1% growth, while izzi, relying on its older hybrid-fiber coax network, experiences user churn.
- These leading fiber ISPs deliver superior speeds and an enhanced user experience. Totalplay leads with a median download speed of 160.48 Mbps in the first half of 2025, followed by Megacable and Telmex. Greater adoption of faster fiber services drives Totalplay's lead in gaming latency, with a median of 66 ms.
- Consumers are migrating to faster speed tiers, especially on networks that support higher performance. In Chihuahua, over half of Totalplay's customers enjoy speeds over 100 Mbps. This trend is evident in the growth of users recording speeds exceeding 300 Mbps.
- The benefits of fast fiber are often limited by outdated Wi-Fi routers. Many users cannot fully utilize their broadband plans due to their Wi-Fi equipment, especially those with izzi and Telmex.
- Network quality directly impacts the experience of latency-sensitive applications like online gaming. Fiber providers offer a distinct advantage for gamers, with Totalplay delivering the lowest gaming latency. Izzi lags behind due to its reliance on a hybrid-fiber coaxial network.
- Net promoter scores (NPS) highlight the importance of speed. For the lowest speed tier, NPS is deeply negative, while it becomes strongly positive for the highest speed tiers. Faster connectivity is not just a technical feature but a key driver of a positive customer experience.
Mexico's broadband market is heavily influenced by Telmex, which is transitioning from DSL to fiber. Despite this, the market has undergone a rapid transformation, driven by investment in fiber optic infrastructure. Telmex, Megacable, and Totalplay are aggressively expanding their fiber networks, with Megacable maintaining a high capex-to-revenue ratio.
This race to deploy fiber in Mexico's last mile is pushing median network speeds, but Mexico still lags behind many regional peers. It ranks 68th globally on the Speedtest Global Index for August 2025, with countries like Chile, Peru, Brazil, Colombia, and Argentina outperforming it.
Mexican cities are witnessing a rise in fiber connectivity, with median download speeds increasing across all ISPs. Upload speeds have also improved, thanks to Totalplay's symmetrical speed offerings. In cities like Mexico City, Chihuahua, León, and Puebla, Totalplay leads the way with significant speed increases.
Analysis of speed tiers shows a clear user migration to faster rate plans. ISPs face the challenge of convincing users to upgrade, with Totalplay differentiating itself by offering a minimum speed of 100 Mbps in its lowest tier.
In Chihuahua, a much larger share of Totalplay customers opt for faster connections compared to other ISPs. There are minor changes for izzi and Telmex, while Totalplay and Megacable see more significant shifts in their user bases towards faster speed tiers.
The legacy Wi-Fi issue persists, with many users still on slower Wi-Fi standards. This is more prevalent among Telmex and izzi customers, limiting their real-world experience. Totalplay and Megacable customers have greater access to modern Wi-Fi equipment.
Advanced fiber providers offer improved quality of experience (QoE) for demanding applications like online gaming and video calling. Totalplay and Megacable deliver lower gaming latency, while izzi's HFC network lags behind.
The superior network performance of leading ISPs directly impacts customer satisfaction and loyalty. NPS scores show that customers on higher-speed tiers consistently report greater satisfaction. This trend is consistent across all major ISPs, highlighting the importance of speed in driving a positive customer experience.
Customer satisfaction predicts customer loyalty, and when combined with migration patterns, the market dynamics become clear. Izzi, which hasn't embraced fiber as aggressively, sees customer churn, while Megacable, Telmex, and Totalplay gain customers. Totalplay and Megacable consistently record net customer gains.
The competitive landscape in Mexico's fixed broadband market will continue to be shaped by fiber network performance. ISPs must carefully manage their customer bases, balancing speed tier upgrades with price elasticity. Addressing performance bottlenecks like outdated Wi-Fi equipment is crucial for meeting consumer expectations and monetizing network investments.
As Totalplay demonstrates, pairing advanced fiber networks with modern Wi-Fi CPE is key to staying ahead in this competitive market. Stay tuned for more insights into global network performance trends by subscribing to Ookla Research.
