Mobile Internet is driving the growth of the mobile market in Mexico. The increasing demand for mobile data services has been a key driver of growth in the mobile market in Mexico. As of 2021, 4G/LTE is the most widely used mobile network technology in the country. In this article we will discuss some latest trends and figures about Mobile market in Mexico. Let’s start:
Overview of Telecommunication Market:
| Mobile Network Operators | Market Share |
|---|---|
| Telcel (América Móvil) | 70%+ |
| Movistar (Telefónica) | 15% to 20% |
| AT&T | 15% |
There are three major players for telecom services:
- América Móvil
- AT&T
- Telefónica
- América Móvil, which is owned by Mexican billionaire Carlos Slim, is the largest telecommunications company in Mexico, with a market share of over 70%. The company operates under several brands, including Telcel for mobile services, Telmex for fixed-line services, and Claro for operations in other Latin American countries.
- Telefónica, which operates under the Movistar brand, is the second-largest player in the market with a market share of around 15%. The company offers mobile and fixed-line services, as well as internet and television services.
- AT&T has been rapidly expanding its presence in the Mexican market since its acquisition of Iusacell and Nextel in 2015, and it now has a market share of around 20%. The company offers mobile and fixed-line services, as well as entertainment services through its acquisition of DirecTV.
Concentration
Even though regulators have tried to dilute the telecoms monopoly in recent years, América Móvil remains the dominant player in this market. Its subsidiary Telcel leads the mobile segment and has more than 70% market share. Movistar is second with 17.3% and AT&T follows with 15.6%. Nowadays, the MVNO segment has 5.6% of the market share. This might seem small, but in other countries, like Brazil, the local share is only 1%. The Mexican market is led by Bait with 36.2%, followed by Freedom Pop with 15.1%, Oui with 7.9%, Virgin with 6.6%, Megamóvil with 5.4%, and Oxxo Cel with 1.6%. These percentages are drawn from a total of 8 million mobile lines in the MVNO sector.
According to the consultancy group The CIU, the movement of these agents with complementary services and other telecom services has accelerated the consolidation of MVNOs.
MVNOs have seen massive growth in Mexico for the past few years. This acronym stands for Mobile Virtual Network Operator, which is used to designate services providers that do not own the network over which they provide the services. Through competition, they bring lower prices and better services to users. Here we give you all the details based on a report carried out by the consulting firm The CIU about the MVNO sector in Mexico and how it could potentially impact other markets in Latin America.
Key considerations
The biggest MVNOs in Mexico gather over 8 million lines, producing revenues of up to 1.63 billion pesos or USD 820 million. More than 80% of the revenue comes from prepaid services. Services of the MVNOs can cost 72 pesos per month, more than Telefonica’s Movistar, 63 pesos per month. The ICT market in Mexico has 136 billion pesos in revenue (USD 6.8 billion). Although these numbers show significant gains, they don’t compare to the ones of the MVNOs.There has also been a drop in equipment sales according to the analysis.
The mobile telecommunications market shows an increase that exceeds the GDP of Mexico by three times. The annual revenue grew by 6.4% by the second quarter of 2022. The MVNO sub-sector has been essential for this dynamism since 2020 when it became more popular. The disruptive rate and excellent services have been key factors. Now, we can see an increase in revenue for line sales.
Mobile phone user rate in Mexico from 2014 to 2021:
| By Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|---|---|---|
| Number of Mobile Users | 114.3 | 111.7 | 123.9 | 122.9 | 122.0 | 120.2 | 107.7 | 105.0 |
Mexico Smartphone users by brands:
| Mobile Brand | Market Share |
|---|---|
| Samsung | 33.93% |
| Apple | 25.34% |
| Huawei | 17.34% |
| Xiaomi | 9.75% |
| Motorola | 3.68% |
| LG | 2.52% |
| Oppo | 1.84% |
| Alcatel | 1.60% |
| Vivo | 1.55% |
| Other | 2.25% |
Are you willing to jump into Mexican Mobile Market, read the Visa Requirements
| Type of Visa | Purpose | Length of Stay | Requirements |
|---|---|---|---|
| Tourist Visa (FMM) | Tourism or Business | Up to 180 days | Valid passport, completed FMM form, and payment of fee (usually included in airfare) |
| Temporary Resident Visa | Temporary residency for non-work purposes | Up to 4 years | Valid passport, application form, proof of financial solvency, and other documentation as required (e.g. criminal background check) |
| Work Visa | Employment in Mexico | Up to 1 year | Valid passport, application form, job offer from a Mexican company, and other documentation as required (e.g. educational credentials) |
| Student Visa | Study in Mexico | Length of program | Valid passport, acceptance letter from a Mexican educational institution, and other documentation as required (e.g. financial support) |
| Business Visa | Business activities in Mexico | Up to 180 days | Valid passport, application form, proof of business purpose, and other documentation as required (e.g. letter of invitation from a Mexican company) |
Mexico is a place to explore the mobile market that can also be a fantastic destination for your next holiday! Knowing more about this market allows you to evaluate investment possibilities within complementary services. Before jumping into the Mexican market, you should take a trip to visit the country and explore the market on your terms. If you want to visit Mexico, you will need the Mexico Tourist Card for a smooth entry. Also, don’t forget to follow these health recommendations created after the pandemic. Just complete an online form with your data and you will receive an email with the official travel document. Show it to immigration authorities upon arrival in Mexico and you will be ready to explore this beautiful country!
