Systematically, the mobile telecommunications market in Mexico registers dynamism that exceeds at least three times that of the economy as a whole, measured by the Gross Domestic Product (GDP). Thus, during the second quarter of 2022 (2T-2022), the annual growth of revenues from this segment was 6.4%, while that of seasonally adjusted GDP was 2.1%.
One of the driving factors has been the Virtual Mobile Network Operators (MVNO) sub-segment, which has registered an accelerated dynamism since 2Q-2020, attributable to the emergence and diversification of the offering players, with disruptive tariff and service offers (especially data) in the market. This has translated into an increase in its influence and market footprint, both in revenue and in lines.
MVNOs in Numbers: Lines and Income. The set of these operators that acquire their service offering capabilities from traditional operators (AT&T, Telcel and Altán) register a line accounting of 8.0 million as of 2Q-2022, 79.8% more in their annual comparison, with a proportion of 92.6 % that correspond to the prepaid scheme and the remaining 7.4% to postpaid.
In revenues, they accumulated $1,633.4 million pesos (growth of 93.6%), that is, they almost doubled the figure reached during the second quarter of 2021.
For the level of average spending on services per user (Average Revenue per User or ARPU for its acronym in English), they registered a level of $72 pesos per month that exceeds that of Telefónica Movistar ($63 pesos per month) and that increased 4.3% year with year.
Main Players. This numeralia leaves a portion equivalent to 6.0% of the market in terms of lines attributable to the service offer of MVNOs, its historical maximum since its foray into the market more than eight years ago, in June 2014, and which triples the participation of just two years ago (2T-2020).
In revenues, its market footprint amounts to 2.1% of the total, one percentage point more in its annual comparison to 2Q-2022.
The growth of players that have sought to differentiate themselves by offering added value to their customers in other business verticals, such as supermarkets and convenience stores, stands out.
In this regard, we find the operator BAIT in the lead with a proportion of 36.2% of the MVNOs sub-segment due to its accounting of lines, as a consequence of its unlimited offer of services and promotions in the purchase of products. In second place, we find FreedomPop with 15.1% for its bundling with Dish’s pay TV service, followed by Elektra’s OUI (7.9%), Virgin Mobile (6.6%), Mega Móvil (5.4%), OXXO Cel 1.6 % and a plurality of other players with a cumulative 21.1%.
Precisely, the differentiation of the offer and its complementarity with other telecommunications services has enabled the marked dynamism and consolidation registered by several of the aforementioned players. However, there is still room to be covered by other providers seeking to add value to their customers, generate loyalty or appeal to their main business, among other benefits for their users.
Thus, this market is the trigger for the dynamism of the mobile telecommunications market with a growing number of players, a diversification of offers and rate disruption that contributes to closing the connectivity gap and approaching a scenario of greater effective competition in Mexico.
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