Market Trends of Mexico MNVO Industry
Consumer Segment to be the Largest End User
- One of the main factors driving the growth of MVNOs in Mexico is the increasing demand for low-cost mobile services. Many consumers in Mexico are price-sensitive and are looking for affordable alternatives to traditional mobile operators. MVNOs have responded to this demand by offering competitive pricing and flexible plans that cater to different segments of the market.
- Another factor contributing to the growth of MVNOs in Mexico is the increasing availability of mobile internet services. According to the report by GSMA, in 2023, 418 million people in Latin America used mobile internet, an increase of 75 million over the last five years.
- Also, the country is experiencing a significant increase in 5G adoption. As the demand increases, more consumers are looking for affordable and reliable mobile internet services. MVNOs have responded to this demand by offering a range of plans and packages that cater to different needs and budgets. Hence, consumers are actively looking for MVNO services in Mexico, which drives the overall demand.
- In terms of operating mode, service providers are gaining rapid traction in the consumer segment in Mexico. Service providers are focusing on consumer experience and value to meet the needs of Mexican households for reliable high-speed internet delivered by local ISPs.
- Moreover, companies are also increasing their investments to expand their business in Mexico, looking at the growing demand for MVNO services among consumers. For instance, in January 2024, Helium Mobile, a T-Mobile MVNO in the United States, recently struck a significant deal with Telefónica in Mexico.
- In this new partnership, Telefónica will leverage Helium Mobile's Wi-Fi hotspots to enhance its cellular coverage in key Mexican cities like Mexico City and Oaxaca. Telefónica's strategy involves compensating Helium Mobile approximately 50 cents per gigabyte consumed by its customers on these Wi-Fi hotspots. Such developments are continuously growing in the country and driving the market positively.
- In Mexico, social media usage is growing significantly, with platforms like Whatsapp, Facebook, Instagram, and TikTok experiencing substantial increases in the user base. According to data by Asociación Mexicana de Internet (AMIPCI), Whatsapp has a 95.6% penetration, followed by Facebook's 84.9%. Thus, MNVOs are capitalizing on the trends by offering affordable and flexible mobile plans that cater to the needs of media-savvy users.
Understand The Key Trends Shaping This Market
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Full MNVOs Holds Major Market Share
- Full MNVOs hold the major share of the market. These operators deploy the infrastructure of the existing mobile networks while maintaining control over their branding, customer service, billing, and other crucial services. This enabled them to offer competitive services without establishing a physical network infrastructure to operate.
- MVNOs are optimistic about the potential of emerging technologies such as eSIM, IoT/M2M, and 5G. Specifically, they believe leveraging eSIM technology could significantly enhance their commercial offerings. eSIM, a technology that substitutes the traditional physical SIM card with remote connectivity, not only promises enhanced services but also presents a lucrative opportunity for MVNOs.
- By adopting eSIM, MVNOs can tap into new revenue streams by catering to travelers in their home countries. The shift to eSIMs can also lead to cost savings by streamlining the physical SIM production process. As per data by GSMA Intelligence, 5G mobile connections are expected to reach 87 million by 2030.
- Moreover, the country invests in developing its network infrastructure to support MNVO operators. The next mobile event is planned for October 2024 in Mexico. It will focus on various critical aspects of the telecommunication industry, which include MNVO success, 5G development, and mobile connectivity. It will help the industry players with the best approaches for entering the mobile business by investing in 5G and sharing the infrastructure with mobile network operators and mobile virtual network operators.
- Furthermore, numerous wireless communications service providers are bolstering MNVOs with advanced solutions to help them overcome network hurdles. Optiva's services in Mexico provide a comprehensive BSS suite that is flexible, scalable, and cloud-based. This suite includes a charging engine, product catalog, billing, CRM, and other capabilities. Service providers can now swiftly extend network access and coverage to numerous MVNOs and digital enterprises by leveraging a SaaS-based multi-tenant model.
- Optiva's end-to-end BSS solution empowers MVNOs to seamlessly manage their services, enabling personalized, real-time customer interactions across all touchpoints. Additionally, it offers comprehensive self-care features for both MVNOs and their subscribers. Today, this innovation helps lower plan prices and gain a competitive edge in the market.
