Despite its size and level of economic development, Mexico is the only OECD member country without any domestic Internet exchange capacity. Mexico has had a restrictive telecommunications and Internet service market until very recently and as a result, has not seen the emergence of an IXP. The lack of domestic traffic exchange has had a dramatically visible effect on Mexican transit pricing relative to other economies of similar size and development.

However, following substantial changes in legislation introduced in 2013 that open the telecom sector to new entrants, the market is now in a process of major change.[1] This change is underscored by recent public discussions regarding establishment of an IXP in the country – discussions that aptly demonstrate the entrenched positions typical of many incumbent or dominant fixed or mobile operators.

In November 2013, Telmex, the Mexican incumbent and dominant provider, actually claimed that it is not necessary to establish an IXP. To support its view, Telmex pointed out that local content only makes up 0.6 percent of the Internet traffic in Mexico, saying that so little traffic does not justify setting up a local Internet exchange. Aside from the benefits that an IXP can contribute to the creation of a better environment for local content generation, companies such as Kio Networks, which intends to install an IXP in its Santa Fe data centre in Mexico City, have responded by pointing out that the presence of such infrastructure would provide Mexico with greater sovereignty over data generated by local Internet users.

An association of six members and named Consortium for Internet Traffic Exchange is expected to develop and operate the IXP in Mexico.  Mexico’s communications regulatory body, COFETEL, is supportive of the IXP.

[1]    COFETEL, the Mexican regulator, has opened access to competitive long-haul circuits, has licensed a second national carrier