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Several large U.S. telecommunications firms are active in Mexico. AT&T is partnered with Alestra while Worldcom maintains a minority share of Avantel. SBC Communications works closely in Mexico with its partner, Telmex. Shares of Telmex, Mexico's incumbent dominant carrier, also are traded on the New York Stock Exchange. Competition in the sector has been hampered by the inability of Mexico's telecommunications regulator to enforce dominant carrier regulations, with regulation largely provided through a series of private agreements among the three largest carriers. This has negative implications for U.S. investors in the sector, although there are no reported barriers to exports of U.S. telecommunications goods and services. The teledensity rate in Mexico (around 13%) is among the lowest in Latin America. Mexico's satellite service sector was opened to competition, including limited foreign direct investment, in 2001.

Telephones - main lines in use: 16.7 million (2004)

Telephones - mobile cellular: 31.7 million (2004)

Telephone system: highly developed system with extensive microwave radio relay links; privatized in December 1990; opened to competition January 1997

domestic: adequate telephone service for business and government, but the population is poorly served; domestic satellite system with 120 earth stations; extensive microwave radio relay network; considerable use of fiber-optic cable, coaxial cable, and mobile cellular service international: satellite earth stations - 32 Intelsat, 2 Solidaridad (giving Mexico improved access to South America, Central America, and much of the US as well as enhancing domestic communications), numerous Inmarsat mobile earth stations; linked to Central American Microwave System of trunk connections; high capacity Columbus-2 fiber-optic submarine cable with access to the US, Virgin Islands, Canary Islands, Morocco, Spain, and Italy (1997)