The increase in the prices of some products of the basic basket, due to inflation, could give an unexpected boom to the Virtual Mobile Operators (MVNO). These companies, which buy wholesale services from large telephone companies and then resell them to the market at affordable prices; they are positioning themselves as a convenient alternative for a portion of consumers who are looking for more affordable options to access connectivity services.
“These MVNOs give the possibility of having unlimited data and unlimited calls at only 49 pesos per month… (thanks to this offer) they are taking on an important role in the Mexican market,” says Rodrigo Guarneros Gutiérrez, deputy general director of Foresight and Economic Impact Analysis of the Federal Institute of Telecommunications (IFT).
The agency estimates that by the end of 2022, 4.6 million new mobile lines will be paid to reach 127 million in Mexico, which will mean an increase of 2.1%.
One of the main factors that will make users subscribe to a mobile line -Guarneros Gutiérrez says- is a greater offer of data bags to access mobile internet or applications such as whatsapp at a more affordable cost. “Part of the population is looking for other mobile connectivity alternatives and this has to do with the appearance of new virtual mobile operators”, explains the specialist.
According to the consulting firm Selectra, for the next few years, MVNOs such as Izzi Móvil, Walmart’s BAIT, EXiS or Telgen, will continue to gain market share in Mexico, since they are beginning to offer the same quality of products and services to 30 % cheaper on average, compared to operators such as AT&T or Telmex. This added to the possibility of contracting their services without the obligation to stay with the company for a whole year, as is the case with other traditional telephone plans.
Jesús Romo, an analyst at Telconomia, agrees that Virtual Mobile Operators have taken on a relevant role as a connectivity option for users who live in remote areas. “MVNOs go for certain niches, such as users who are in suburban or rural areas… It is good (in terms of competition) that the growth in lines is accompanied by MVNOs because it helps the diversity of options,” he says.
Although MVNOs barely hold 3.9% of the mobile market, in the third quarter of last year, they boosted this industry. In that period, 2.1 million new mobile lines were contracted and, of them, 38% (about 801,000) were concentrated by operators such as Izzi Móvil, Bait or YoTelco +, according to data from the consulting firm The Ciu.
