EconomyFinancialMegacable wants to 'fight' Telcel by taking advantage of...

Megacable wants to 'fight' Telcel by taking advantage of AT&T's infrastructure

Virtual Mobile Operators (MVNO) have been characterized by focusing their commercial offers on the prepaid segment (or recharges). But Megacable wants to differentiate itself from them even though it belongs to this telephony sector. The Guadalajara telecommunications company wants to follow in Telcel’s footsteps: focus on users with higher purchasing power in the postpaid segment.

Enrique Yamuni, CEO of the company, acknowledges that the telecommunications company “likes postpaid subscriptions.” This situation has led the company to cancel subscribers that focus on prepaid to achieve its goal of improving its Average Revenue per User (ARPU), which translates into higher revenues for the operator.

In the second quarter of this year, Megacable’s MVNO reported a total of 433,894 new lines, which represented an increase of 68.9% compared to the same period last year, however, compared to the immediate quarter it is a slight increase of 0.3%.

In addition, according to Telconomy, the company reported revenues of 144.2 million pesos, an increase of 113.6%, compared to the same period in 2021, and 7.3% compared to the first quarter of this year. Its ARPU is 111 pesos, ranking as one of the best in the MVNO segment, only after Izzi, which is 127 pesos, and the average MVNO, which is 45 pesos.

“We are a postpaid company, we like subscriptions,” says Yamuni in a conference with analysts.

Jesús Romo, director of the Telconomía consultancy, points out that it is “a success” that Megacable bets on one of the mobile segments that has fewer players, as it allows it to differentiate itself from the rest of the virtual mobile operators, which have bet more on the prepaid segment (top-ups).

“In postpaid there were only three options and now these players (Megacable and Izzi Móvil) fundamentally expand this segment, which was the most difficult. These are the operators that are bringing competition to this sector,” he says.

In addition, he says, that cable companies like Megacable have begun to understand the advantage of offering their subscribers a mobile service and not a fixed one “because now users value the issue of data” and that is where the added value lies.”

The company is currently focusing on its strategy of expanding its market coverage to increase the subscriber base in all segments of its services.

Only from April to June of this year, Megacable has invested 2,796 million pesos, 41.9% more than the same period last year. “During this period, the company continued to focus on executing its network evolution project and entering new markets. These investments will contribute to the growth of subscribers and income in the coming periods”, the company points out in its financial report.

To boost the presence of Megacable’s MVNO and improve its postpaid subscriber base, the company decided to sign a contract with AT&T in March this year to use its infrastructure. “AT&T will bring us more subscribers from this range,” says the company.

In addition, he adds, “the AT&T network allows the user to use an iPhone and other cell phone models that are not approved in the Altán network (which requires cell phones to have band 28). At AT&T we do not have that restriction.”

Making use of the infrastructure of the operator of American origin also gives Megacable the opportunity to offer 5G technology services to its users.

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