Mexico is the second largest Latin American economy, but it seems the cost of phone and internet bills are holding it back. From the years of 2005-2009, consumers in mexico spent 13.4 billion dollars per year excess for phone and internet. Also it seems the highest fees impacted the poorer families. This overcharging ended up costing the country 129 billion dollars over a five year time span.

The telephone market is dominated by Slim Telefonos de Mexico A.K.A. Telemex which provides nearly 80 percent of the services, while billionaire Carlos Slim controls around 70 percent of the cellphone market with America Movil.

Dionisio Perez-Jacome, minister of Communications and Transport had this to say, according to one source:

“This is a critical study…that exposes the weakness of the telecommunications sector in Mexico.”

In the year 2008, Telemex had a profit margin of nearly 50 percent, while countries like Canada and the UK only had close to 30 percent. Mexican Government is, in the mean time, trying to increase broadband speeds in mexico, which apparently they feel will soften the blow of thee high prices. Evidently in their opinion broadband speed trumps ridiculous price.

In your opinion, does speed outweigh price or do steep prices steer you elsewhere? Should speed and price equal each other? With this economy who can afford expensive internet anyway? Leave your opinions in the comments section