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22 March 2025

Elon Musk Challenges Carlos Slim In Mexican Internet Market

Starlink promises free connectivity as Telmex enhances its service amid rising competition.

Elon Musk has declared a competitive war on Carlos Slim, the richest man in Mexico, by introducing his internet service, Starlink, to the Mexican market, challenging Slim's dominance through Telmex. This strategic move comes in light of a tense relationship between Slim and the U.S., particularly with Donald Trump, as Musk's action could disrupt Slim's reign over internet services.

The official announcement came on March 21, 2025, as Musk proclaimed that Starlink Mini is now operational in Mexico. The service aims to provide high-speed internet connectivity, purportedly with no signal loss, to both urban and rural areas. Starlink's offering is expected to allow users to work and play in remote locations, thereby increasing competition for Slim's Telmex.

Starlink’s promotional materials boast that users can connect to the internet in minutes, highlighting its compact design and low energy use. Musk's strategy includes an initial offering of free connectivity through a partnership with T-Mobile. Users with compatible devices will initially be able to send and receive text messages, share location data in real-time, and access emergency services. This initial beta phase is set to last until July 2025, after which subscribers will have discounted access.

Supported devices for Starlink include popular models like Apple’s iPhone 14 and later versions, Google’s Pixel 9 series, and various Samsung models, enabling a broad base of users to engage with the platform seamlessly. Musk is banking on the appeal of swift connectivity and robust service to lure customers away from Telmex.

In anticipation of Starlink's arrival, Telmex has responded by enhancing its service offering. The company is, under the leadership of Slim, promoting its Infinitum internet service with symmetrical speeds of 80 Mbps for a relatively low fee of 389 Mexican pesos per month. This package promises additional perks, including free access to Claro Video, Paramount+, 100 GB of storage on Claro Drive, McAfee antivirus protection, and even six months of complimentary Netflix.

As Starlink seeks to entice consumers with its strategy, Slim's Telmex continues to bolster its existing user base with appealing additional services. Customers interested in Telmex's offerings can verify their coverage and sign up for the internet plan to unlock these entertainment and storage benefits. This competitive landscape unfolds amid ongoing discussions about pricing and accessibility in Mexico’s internet service market.

Musk's declaration of war on Slim is more than just a business maneuver; it's a reflection of the high stakes in the telecommunications sector, where access to quality internet services can significantly influence customer loyalty and satisfaction. As Starlink aims to capture the market's interest with promises of robust, reliable internet access, the immediate effects of their duel will reshape how millions of Mexicans connect online.

Elon Musk has not only entered the Mexican market but is also setting the stage for what could become a significant shift in the industry by openly challenging one of its most formidable figures. The arrival of Starlink might not only transform internet accessibility for many but could also lead to a realignment within the competitive landscape of service providers in Mexico.

As the rollout of Starlink progresses toward its launch phase, it will be intriguing to observe the strategies that both Musk and Slim deploy to outmaneuver each other. The battle between these two tech titans underscores the importance of innovation, affordability, and service quality in attracting and retaining customers. The competition may ultimately foster better options and offers for users, urging both companies to enhance their services continually.

This entrepreneurial clash reflects broader tensions in the international tech realm and promises to have ripple effects well beyond merely Mexican borders. Whether Slim can retain his crown in the internet sector against Musk's entrepreneurial zeal remains to be seen. With the market dynamics evolving, consumers in Mexico stand to benefit from this high-stakes rivalry.