In recent years, Mexico has seen a steady rise in companies offering mobile phone services at more affordable prices. Known as Mobile Virtual Network Operators (MVNOs), these providers are attracting growing interest from consumers who want more flexibility and better value for their money.
The trend has become particularly noticeable as rising living costs push households to reconsider their spending. According to Mexico’s National Institute of Statistics and Geography (INEGI), the National Consumer Price Index (INPC) increased by 0.70% in August compared with the previous month, bringing annual inflation to 8.70%, its highest level in two decades.
As inflation continued to put pressure on household budgets, many consumers began cutting back on non-essential spending and looking for cheaper alternatives. Mobile connectivity, however, has become an essential part of everyday life, making affordable phone services increasingly important.
According to telecommunications consultancy The CIU, Mexico had 134.2 million mobile lines by the end of the second half of 2022, representing a 4.8% increase compared with the same period a year earlier. Prepaid services continued to dominate the market, accounting for 82.5% of mobile lines, while postpaid plans represented the remaining 17.5%.
What Exactly Is an MVNO?
Mobile Virtual Network Operators are companies that provide mobile services without owning their own radio spectrum or building and maintaining a nationwide telecommunications network. Instead, they lease network capacity from established operators and use that infrastructure to deliver calls, texts and mobile data to their customers.
In Mexico, the main companies operating their own network infrastructure include:
- Altán Redes
- AT&T
- Movistar
- Telcel
Because MVNOs don’t have to build and maintain their own large-scale mobile networks, they can often offer more flexible plans at lower prices. According to comparison platform Selectra, some MVNO plans can cost up to 30% less than those offered by Mexico’s major mobile operators.
Why Are More Consumers Choosing MVNOs?
MVNOs have become an appealing option for people looking for affordable and flexible mobile services. Some of their main advantages include:
- A wider selection of plans and packages for different budgets
- Lower prices compared with traditional mobile operators
- Easy account and service management through mobile apps
- Access to the same network coverage provided by their host operator
- No mandatory long-term contracts
The combination of inflation and the economic impact of the pandemic has also encouraged more Mexicans to consider MVNOs as an alternative for staying connected.
Arpit Gupta, co-founder of UnDosTres, explained that the arrival of new companies has increased competition in the mobile market, giving consumers more options and helping drive better prices. He also highlighted the importance of providing a wider range of recharge options for customers using different mobile operators.
MVNOs Continue to Gain Ground in Mexico
The growth of MVNOs has continued as consumers look for greater value and more freedom when choosing their mobile provider. According to The CIU, virtual mobile operators added around 600,000 lines during the second quarter of the year, bringing their overall market share to 6%.
The removal of mandatory contract periods has also helped make MVNOs more attractive, allowing customers to switch providers more easily and choose services based on their needs and budget.
If you’re considering switching to an MVNO, it’s worth checking which virtual operators are available and, most importantly, which mobile network infrastructure they use. This can help you understand the coverage, speeds and services you can expect before making the switch.
