In the last year, IPOs went from 2.33 million customers to 3.95 million, which represented an increase of 1.62 million.
A year ago, Walmart entered the cell phone market in Mexico with its Virtual Mobile Operator (OMV) BAit, since then it has accumulated 700 thousand users, however, now it wants a next step in the telecommunications sector and compete in the internet segment at home, with a pilot test in 365 of its stores.
In an interview with Forbes México, Beatriz Núñez Jiménez, Vice President of Growth of the company, says that the MVNO was the first product in this sector, but more vertical services will come, of which in their sum of the value they deliver to the client.
” We are also launching in 365 stores where internet is already available at home, also a very aggressive offer in terms of price and connection capacity for our customers, they only buy a modem arrives at their home, connects it and is already enjoying BAit”.
Likewise, he anticipated that bundling, integration with other verticals will come, since Walmart has an ecosystem initiative with different verticals, from telecommunications, credit solutions, remittances or health.
Núñez Jiménez highlighted that BAit can go where others cannot, since its partner Altán has a commitment to reach rural populations, which boosts the connectivity of the population; so, as part of their plan they are doing a pilot test to place antennas in their stores.
“BAit hand in hand with Altán is reaching populations where no one else reaches and we already have stores in those rural areas where there is no connectivity, so they use this physical asset to put antennas and provide connectivity,” said the directive.
In this sense, he stressed that they are going to carry out a pilot test in 3 stores, where they seek to analyze the technical capacity of coverage, services, adoption, and after the help of Altán to be able to scale to more cities where it has stores and there is no connectivity.
In fact, Beatriz Núñez said that in the medium term she sees the company as a protagonist of digital inclusion in the Mexican market, since she considers that BAit has an enormous opportunity to play a leading role in the Mexican market.
OMV continue to grow in Mexico
In the last year, virtual mobile operators have registered an explosion in the Mexican market with the entry of new players, where more than one commercial chain has seen an opportunity; according The CIU data in the first quarter of 2021 represented 3.1% of mobile lines, against 2.6% in the same period of 2020.
And it is that, in the last year, IPOs went from 2.33 million customers to 3.95 million, which represented an increase of 1.62 million, equivalent to 69.9%; while its income had an annual increase of 98.7%, from 315.2 to 626.2 million pesos, according to the consulting firm.
In this sense, the firm points out that all virtual mobile operators, with the exception of Altán, are growing in absolute terms, but are losing market share; where Freedom Pop continues to be the leader, with a share of 31.1% and around 1.2 million lines.
While the MVNOs incorporated into Altán, The CIU have had exponential growth due to an aggressive commercial offer, agreements with a greater number of relevant companies, an aggressive market strategy aimed at niches and a positive consumer experience with the network.
Until last March, Altán’s partner companies, such as Walmart’s BAit, represented 22.1% of the market, approximately 872,000 lines; while Elektra’s OUI has 21.7%, with around 857,000 clients.
The consulting firm specifies that Virgin Mobile has a 6.3% stake, followed by Megacable with 5.3%, Oxxocel with 2.1%, Izzi with 2.4%; while other players accumulate 9.1% of the MVNO market.
In the case of Oxxo, the convenience store chain launched its service a little over a year ago, in November 2019, with the aim of providing its customers with a mobile phone service over the largest network in the country, in addition to benefits exclusive; achieving in these months to be one of the main 10 players in the market.
While in June 2020, Walmart deployed its Bait (Bodega Aurrera Internet y Telefonía) nationwide, with a prepaid offer from the country, unlimited internet for 50 pesos per week and 200 pesos per month.
In turn, in July 2017 Soriana entered the MVNO market through its first telecommunications service Soriana Móvil, with which it will offer prepaid plans and recharges, in addition to benefits that are linked to its reward card for using the service.
Source: forbes.com.mx
