Mexico Mobile Virtual Network Operator (MNVO) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Mexico Mobile Virtual Network Operator (MNVO) Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Mexico MNVO Market size is estimated at USD 0.74 billion in 2024, and is expected to reach USD 1.63 billion by 2029, growing at a CAGR of 16.91% during the forecast period (2024-2029).

Key Highlights

• In Mexico, MVNOs are reshaping the telecommunications landscape by catering to specialized customer segments, enhancing market competitiveness. MVNOs often provide agility over traditional mobile operators, leveraging this advantage to offer cost-effective plans and complimentary services. Moreover, in 2024, these operators are set to expand their service portfolios and provide lower-cost plans, fueling the demand in the Mexican telecom industry.
• The Mobile Virtual Network Operator (MVNO) is a more robust and adaptable variant of the MNO, and with increasing penetration of smartphones, the market is expected to grow during the forecast period.
• According to The National Institute of Statistics and Geography, in 2024, the number of mobile internet users in Mexico was forecast to exceed 74 million. Thus, new chip and wireless broadband technologies have equipped millions in the country with handheld computers capable of easily performing almost any task. As of the third quarter of 2023, Facebook and WhatsApp were Mexico's most used social media platforms, reaching 93.2 percent and 92.2 percent of the country's online audiences.
• In terms of partnerships and contracts, in March 2024, Global information and communication player ZTE secured the bid for izzi'sMobile Virtual Network Operator (MVNO) project, allowing it to provide network-wide core network and value-added services to izzi's millions of users. This collaboration boasts a comprehensive suite of Network Elements (NEs), including a virtualized core network and virtualized value-added services, all supported by ZTE-developed hardware and Cephstorage mode. Under the umbrella of Grupo Televisa, Izzi is Mexico's largest pay-TV operator and the second-largest fixed network operator. It serves 6.3 million subscribers and offers Quad-Play services across various cities in Mexico.
• In March 2024, ZTE Corporation announced its exclusive success in securing the bid for the Mexico izziMVNO project. ZTE will provide izziTelecom with network-wide core network + VAS services based on the dual resource pools of Red Hat OSP+OCP, showcasing ZTE's technological leadership in the virtualization field.
• MVNOs are increasingly leveraging the transformative power of AI and 5G technologies to enhance their offerings. AI telco solutions are being integrated to optimize customer experiences, streamline operations, and deliver predictive analytics. Digital transformation has given MVNOs the tools to understand better and engage with their customers. Prominent examples include network signaling, billing/revenue management, etc.
• Many Mexican MVNO market players face challenges in service reliability, business model evolution, and cost management. Rising business expenses are a primary hurdle faced by the operators, followed by struggles in SIM card distribution, leading to reduced user numbers.
• With the increasing number of MVNOs and unique service plans, consumers have more choices than ever. They can select providers and plans that align with their preferences and budget, putting pressure on MNOs to keep up. One of the key advantages of MVNOs is their flexibility in pricing. They often provide competitive and cost-effective plans, allowing consumers to save money while still having reliable mobile services. These plans can include prepaid, postpaid, and pay-as-you-go options.

Mexico MNVO Market Trends

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.

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.

Mexico MNVO Industry Overview

The Mexico Mobile Virtual Network Operator (MNVO) Market is fragmented with the presence of major players like Yo Mobile Mexico, Bait (bodega Aurrera Internet Y Telefonia) (Walmart De Mexico Sab de CV), FreedomPop, Virgin Mobile Mexico, Oui Movil. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

• February 2024 - Beyond ONE, Virgin Mobile's investment and operations arm in Latin America, revealed a strategic collaboration with Amazon Web Services (AWS) to spearhead growth and innovation in the region's telecommunications landscape. Leveraging a blend of AWS Regions and their hybrid cloud solutions—such as AWS Outposts and AWS Local Zones-Virgin Mobile aims to revamp its infrastructure, signaling a pivotal move towards cloud integration and digital metamorphosis in Latin America.
• January 2024 - Diri, the company, solidified its multinational status by acquiring Flash Mobile LATAM, marking its expansion into Colombia and Peru. This move not only cements Diri's connection to Mexico's Altán Redes network but also establishes ties with Movistar.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support