For Mexico that is probably pretty shameful (but I don't know the details). But it's not always the hotel's fault.
So, yeah, your hotel may be incompetent or just unwilling to spend the money. (In Mexico I would guess that is the case.)
Here in mexico if you live in certain areas, very few, you can get very fast internet. In most places a couple of mbits (like we have and we are lucky to get that) is the norm. In areas of toluca, like areas of mexico city, you can get totalplay with 100mbits. It's a vast minotity. To be fair though most do not have internet here. Where we live small ciber's are everywhere and they all have very slow internet with antique computers. About 5 pesos (maybe 40 cents us) for a half hour of internet.
Hotel's, not hotel. It's not uncommon, even in (DF) Mexico city. I've been in hotel's where they say they have free internet and then I have to ask to be moved to where there is actually a signal and even then it's no good. Cement buildings contribute I'm sure.
In mexico things are very business oriented, not comsumer oriented. Tourist areas and areas with a high foreign population are the exception, but not the rule for most mexican's living in mexican areas.
The state we live in, Mexico state, is the most populated and larger than mexico city (the only one). The government admits to several hundred thousand in this state without electricity, they lowball big time. While these things happen I will refuse to call our country a developing country as people like to refer to us as (I know you were talking about another country).
So here it's several things. We live in Toluca, the capital of the largest state (population) and for example telmex reception is horible. Both for calls and data, not reliable at all. Very low speeds when you can get good reception. That's just how it is, lack of competition and corruption allow this to happen.
If you do not have service you still pay, your only option is to cut service. Telmex makes a lot of money without even providing service in certain cases.
CFE, electricity, government owned. The electicity goes out for one person or just a few then it's not worth fixing. They will flat out tell you that it doesn't affect enough people so it might be a couple of weeks before they get to it.
I'm just using telcel and cfe as examples to show the mindset.
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mom's '11 iMac's WD drive failed then failed again after replacement and now seems to be failing again after the second replacement, this time out of warranty.
I had the same thing happen with a 1tb western digital. The new one failed and the replacement failed.