EconomyFinancialWhat is a Virtual Mobile Operator and how many...

What is a Virtual Mobile Operator and how many are there in Mexico?

Virtual Mobile Operators (MVNO) are gaining more and more ground in the Mexican mobile market, because their rates are more accessible to users in a context where inflation and the pandemic have put pressure on consumer finances.

From 2020, the year the pandemic began in the country, to the end of 2021, they have gone from having a market share of 1.9% to 5.1%. In the next five years, the expectation is that they will have a 20% share of the Mexican market.

But what are MVNOs?

These types of telephone companies are operators that do not have a frequency spectrum concession or telecommunications infrastructure, but lease it to operators such as Telcel and AT&T.

MVNOs offer voice and mobile data services with flexible plans and with a focus on attractive prices (up to 30% cheaper than those offered by traditional operators, according to data from the Selectra comparator) and convenience. Walmart’s Bait, for example, gives away megabytes in each purchase made by users in its stores.

“The differentiation of its services has a much higher weighting in its business model, therefore, aspects such as customer service, communication, sales strategies, value propositions and alliances in distribution channels stand out. , as well as market niches”, indicates the analysis of the virtual mobile operators market by the Federal Institute of Telecommunications.

How many types of MVNO are there?

Basic Virtual Mobile Operator. It is the one that does not have telecommunications infrastructure, however, it has the facilities to provide customer service, billing and marketing.

Mobile Virtual Aggregator Operator (MVNA). It is the one that markets the capacity and services of a Mobile Wholesale Concessionaire to provide services to end users.

Mobile virtual network enablers or Mobile Virtual Network Enabler (MVNE) . Within the value chain, there are intermediary ICT companies between traditional operators and MVNOs, which provide business infrastructure solutions and services that help run MVNO operations.

How many MVNOs are there in Mexico and what are they?

There are currently 27 active MVNOs in Mexico, which are housed in the infrastructure of Altán Redes, Telcel, AT&T and Telefónica. Here are some of them:

Virgin Mobile, the first OMV in the country

Virgin Mobile was the first company to offer various telephony services through the Virtual Mobile Network Operator (MVNO) scheme.

Its entry into the market in 2014 was aggressive with a view to gaining a large part of the mobile market in the country, but it gradually lost strength due to the fact that the rate competition in this segment is very competitive, which has forced the company to seek new strategies to capture to more users.

Currently this company is still housed in the traffic of Telefónica México.

FreedomPop, the added value

FreedomPop is an MVNO of cable company Dish that is integrated into a value-added business model, that is, where consumers, as part of the cable company’s subscriber base, have access to mobile service that includes airtime, messages and mobile data at no cost. Use the Telcel network.

Walmart’s OMV

Walmart’s Bait is another MVNO that is based on the value-added model. This operator, which uses the Altán Redes network, entered the Mexican market in 2020, the year of the pandemic. The objective of this OMV is to build customer loyalty by giving them mega rewards for each purchase they make. Currently, Bait already has his internet service at home.

YO Mobile, merges telephony and entertainment

The MVNO YO Mobile strategy, which is housed in the Altán Redes infrastructure, not only focuses on telephony services through prepaid models, but also adds entertainment such as soncinema, sports, astrology, emotional well-being, gaming, among others , which consumers can access through their airtime. In addition, it recently added YOYO$ to its digital currency with which it is possible to pay for airtime.

Miio adds financial services

Miio is an OMV or as it is called a telcobank, since its differentiator is its financial service. The company arrived in 2019 to offer financial solutions to the country’s unbanked population. With its service, the user can use their bank card to carry out any transaction, while with the online account they will have the opportunity to pay for services and make phone top-ups.

Telcel, AT&T or Bait de Mama Lucha? The question that Mexicans ask themselves in...

The migration of users from a traditional operator to an MVNO, such as Walmart's Bait, responds to the fact that they offer affordable rates, which is attractive in a context of economic uncertainty.

Two ministers propose that those who do not have a telephone plan hand over...

The argument is that lines that work via recharges are more likely to be used for extortion.

The SCJN invalidates the telephone registry; plans to register prepaid lines

With the resolution, the protection of the information of 129.8 million users who have a telephone line is guaranteed.

More phone extortions? This is one of the risks of creating a Mobile Phone...

Canceling the Panaut would guarantee the protection of the personal information of 129.8 million users who currently have a mobile telephone line.

Minister of the SCJN proposes to invalidate the Telephone Register

The decision of Minister Norma Piña is the result of the unconstitutionality action that was promoted by the INAI, considering that the Panaut violates human rights.