Industrial Organisation Analysis of the Mobile Market in Latin America

Abstract

This paper examines the structure and performance of the mobile telecommunications market in six Latin American countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. Drawing on industrial organisation theory, the study focuses on the degree of market concentration and the presence of oligopolistic dynamics. Key indicators—such as market share, the number of mobile lines per operator, and the Herfindahl-Hirschman Index (HHI)—are used to assess the competitive structure of each national market. The findings reveal consistently high levels of concentration across all six countries, with América Móvil and Telefónica emerging as dominant regional players. These multinational firms maintain a significant presence in multiple markets, reinforcing a pattern of regional consolidation. In Colombia, for instance, three operators—Claro, Movistar, and Tigo—control nearly the entire mobile market, highlighting the sector’s oligopolistic nature and its implications for pricing, service quality, and innovation. The study employs a descriptive and quantitative methodology, using firm-level data and official reports from national regulators and organisations such as ECLAC. It also incorporates insights from the literature on strategic firm behavior and product differentiation to contextualise how dominant actors maintain market power. Despite the existence of regulatory frameworks aimed at fostering competition, the research finds that enforcement is often insufficient to curb concentration. Strategic behaviors—such as service bundling, infrastructure control, and aggressive marketing—allow dominant firms to entrench their position. This paper contributes empirical evidence on telecommunications market dynamics in emerging economies and calls for stronger regulatory mechanisms and regional coordination to promote fairer, more competitive, and inclusive digital markets.