The fifth generation network is one of the big bets of telecommunications operators such as AT&T and Telcel. Since December of last year and in February 2022, respectively, both companies began to weave their 5G network in the country , a new technology that will be essential for various industries such as automotive, mining, health and education by allowing them to optimize their processes and develop new learning models.
In this sense, the so-called virtual mobile operators (MVNO) will also seek to integrate into the new technology, since it will allow them to develop new business models and even make 5G more affordable for users.
According to Erick de la Cruz, an analyst at the consulting firm Select, it is likely that this type of telephone company will not yet join 5G this year because they depend on the deployment of infrastructure by operators such as Telcel and AT&T , coupled with the existence of a greater access of suitable telephone equipment to this technology.
However, he considers that the entrance of the MVNOs to the new network will allow users to have much more accessible offers and packages compared to those being developed by the large operators.
“Without a doubt, these operators can become more attractive (for 5G) because they handle more affordable rates; for example, Bait, from Walmart for 329 pesos offers you 120 gigabytes , while if you compare this package with another mobile operator it can cost you up to more than 1,000 pesos”, he points out.
Although MVNOs can be placed as an option for users and thus increase their subscriber base, these companies will have the challenge of finding a way to make the new network profitable for their operation.
“Talking with operators like Bait, most agree that the (current) business model is not profitable; that is to say, they are offering you too much for a very low price, which means that they are not being profitable, ”says the analyst.
The price comparator Selectra assures that the connectivity services of the MVNOs are up to 30% cheaper than the rates of Telmex, Megacable or Totalplay, because these companies do not invest in spectrum and infrastructure and only lease these services.
Jesús Romo, director of the Telconomia consulting firm, says that one option is for these operators to add services not only for users, but now for companies, since the real business of 5G will be in the projects of the industries.
“One of the areas where it could mature is that there were specialized brands or MVNOs focused on providing the Internet of Things for some city hall, government agency or in agribusinesses, also providing edge computing services,” he says.
As of the first quarter of this year, MVNOs had 7.5 million lines, which means that they hold 5.6% of the total mobile market share, according to data from The Ciu consulting firm.
Dependen de Altán Redes
Currently, most of the MVNOs operating in the country are housed in the Altán Redes infrastructure, while eight of these operators are with Movistar, two with AT&T and 12 with Telcel.
For the analysts consulted, the entrance of the MVNOs to 5G will depend on the plans that Altán has for this technology , since the company, having the 700MHz band, ideal for the new technology, can move more easily. In addition, the company can enter spectrum auctions to add more operators to its operation to give greater efficiency to its network.
“The pressure is going to be on the Red Compartida, because the MVNOs already have several years in which they know that in this market there is no need to be subject to any agreement. In fact, there are already fewer MVNOs that have exclusivity agreements, and as soon as they see greater maturity of 5G, they will obviously try to integrate and not fall behind technologically, “concludes Romo.
