LatAm Telecom: Mexican broadband pressure persists; Mega remains top pick in LatAm Telecom

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LatAm Telecom: Mexican broadband pressure persists; Mega remains top pick in LatAm Telecom

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LatAm Telecom

Mexican broadband pressure persists;

Mega remains top pick in LatAm Telecom

Price Objective Change

MX broadband still challenging; AMX/Mega gaining share 07 June 2026

The Mexican broadband market remains challenging, with AMX continuing to refrain Equity

from price increases, while operators continue to expand their fiber networks, increasing Latin America

overlap. For market share, AMX, Mega, and Totalplay continue to gain share, and we Telecom

expect this trend to persist, although TV’s fiber deployment plan for 2026–27 could slow Rogerio Araujo >>

this dynamic. We saw limited changes to market’s mid-term outlook in 1Q. Maintain a Research Analyst

preference for Mega given its higher growth and solid/resilient FCF. Merrill+55 11Lynch2188 (Brazil)4255

rogerio.araujo@bofa.com

Consolidation: limited changes, but still room for more Lucca R Brendim >>

Telefónica LatAm asset sales are mostly done, but the latest transactions in Chile and Research Analyst Merrill Lynch (Brazil)

Mexico had limited impact on competition, as assets were acquired by new entrants +55 11 2188 4100

rather than incumbents. Looking ahead, a potential sale of AT&T Mexico remains the key lucca.brendim@bofa.com

potential change still on the table in the region. Given its size and strategic positioning,

such transaction could have a meaningful impact on Mexico’s competitive environment. MSR: Mobile service revenue

Chile still has room for consolidation, as it remains a four-player market (see exhibit 1).

AMX: Solid FCF, but top line pressure in key markets

We expect AMX to sustain solid cash generation supported by low capex. In Mexico,