Background on BAIT and Walmart’s Mexican Operations
BAIT, or Bodega Aurrerá Internet y Telefonía, is a virtual mobile operator owned by Walmart in Mexico. It has been a significant player in the Mexican telecom market, distributing chips primarily through Walmart’s extensive network of 3,007 supermarkets across the country.
Discrepancy in User Reports
According to the information revealed by the Mexican Telecommunications Federal Institute (IFT), BAIT reported 8.4 million active users by the end of March 2025. However, this figure is 57.57% lower than the 9.8 million active users Walmart reported to the Mexican Stock Exchange (BMV) in their first-quarter report for 2025.
Market Position
BAIT currently holds the fourth position in Mexico’s mobile market, following Movistar with 21.1 million active users, AT&T with 23.01 million consumers, and Telcel leading the market with an impressive 83.25 million active users.
Impact on Investors and Industry
The revelation by the IFT could deal a blow to BAIT’s investors, who already faced a challenging quarter in 2025 when their primary supplier, Altán Redes, unilaterally increased reference tariffs for all virtual mobile operators. BAIT is Altán’s main customer and utilizes their shared network.
The new reporting guidelines from the IFT emerged due to industry-wide pressure on the regulator, as several fixed and mobile operators suspected BAIT’s rapid user growth. These guidelines aim to ensure transparency in the telecom sector.
Changes in User Definition
The IFT’s new guidelines also affect how active users are defined in the mobile sector. Previously, operators like BAIT considered a line active if used at least once within 180 days. However, AT&T, Telcel, and Movistar preferred a 30-day period. The IFT ultimately settled on a 90-day natural period for defining active users.
Key Questions and Answers
- What is BAIT? BAIT, or Bodega Aurrerá Internet y Telefonía, is a virtual mobile operator owned by Walmart in Mexico.
- Why is the user discrepancy significant? The lower-than-reported active users could impact investor confidence and potentially lead to reevaluations of investment plans in the mobile sector.
- What led to the new user definition guidelines? Pressure from the Mexican telecom industry prompted the IFT to establish clearer guidelines for defining active users, addressing concerns about BAIT’s rapid growth.
