In the past two years, Walmart’s MVNO has grown faster, in terms of line additions, than the two big telecom operators. From 2020 to 2022, Telcel paid for 5.1 million lines for a total of 82.8 million users; while AT&T paid 2.7 million subscribers in that period to reach a total of 21.6 million. Telefónica, owner of Movistar, does not have this public information.
Despite its rapid growth, Bait still has only a small slice of a market dominated by one major player: Telcel. This condition has made it difficult for other business models to prosper.
Before the launch of Red Compartida, which became an alternative to host MVNOs, players that had tried to enter the mobile market, such as Virgin Mobile, did not achieve their growth targets. The English operator, which arrived in 2014, even canceled its operation in 2020, although it returned a year later.
But the growth of the Red Compartida has been a solution for some MVNOs for their business models, since the company’s network allows them to offer very aggressive rates and data promotions, but it has not been the key to their success either. An example is the Virtual Mobile Operator, Yo Mobile, which despite having attractive rates through Altán, its business model did not work when it recognized that it practically gave away telecommunications services to its users. The company ceased operations last year.
What have been the keys to Bait’s success?
Walmart understood the advantage that being a retailer and having outlets would give it. The company’s telephone business does not go alone, but rather accompanied by its other businesses such as the Walmart and Bodega Aurrera stores in order to build user loyalty. The strategy is simple: users who already have the Bait line receive megabytes for free with each purchase, and they also have the possibility of contracting packages with unlimited data for a low cost.
Another point that has made Bait gain more users is that the company adds the telephone business to its promotional events, as was the case last year at the Irresistible End. For this event alone, Bait registered 180,000 new users, in addition to selling 40,000 cell phones with integrated chips, according to the company’s financial report.
The success of the company has led Walmart to increase its charging points, since the 453 points it had are already insufficient, which is why in December last year it opened four experience centers in: Walmart Toreo, the second; Walmart Tlalpan; Walmart Cuautitlan; and at Bodega Aurrera Tintero in Querétaro, with which it is committed to attracting and consolidating consumers of both mobile lines and electronic devices.
“Bait’s success undoubtedly lies in the rates that it is launching on the market but above all in the issue of the points of presence that the company has so that it has greater visibility, unlike other MVNOs that do not have service centers or a way of interact or get to know the brand better”, says Marco Luperini, an expert in telecommunications.