Background on BAIT and its Relevance
BAIT, the virtual mobile network operator (MNO) under Walmart’s Bodega Aurrerá Internet y Telefonía (Bait), has experienced significant challenges in the first quarter of 2025, particularly concerning portability numbers.
Walmart owns BAIT, which serves over 20 million consumers in total. The portability refers to a consumer’s right to switch mobile or fixed-line telephony providers while retaining their existing service number, regardless of the new provider chosen.
BAIT’s Performance in Q1 2025
In the first quarter of 2025, BAIT gained 44,785 cellular lines through portability, a substantial decrease from the 240,689 net cellular lines acquired in Q1 2024.
BAIT experienced a 3.52% reduction in users transferred from other companies compared to Q1 2024, and a 47.48% increase in consumers moving to other brands during the period.
Moreover, BAIT’s net customer acquisition balance—the difference between new and departing customers—dropped by 81.39% in Q1 2025, indicating that BAIT’s rapid growth might be stabilizing.
Comparison with Other Mobile Operators
BAIT’s portability challenges were shared by other major mobile operators:
- Movistar: Experienced a 4.44% decrease in users transferred from other companies.
- Telcel: Faced a 5.87% reduction in users transferred.
AT&T was the exception, registering a 1.51% growth in users transferred via portability.
Portability Trends Among Operators
In terms of numbers donated to other brands due to portability:
- AT&T: Reduced donations by 9.88%.
- Movistar: Reduced donations by 9.45%.
- Telcel: Reduced donations by 8.87%.
Telcel saw a 12.72% increase in user acquisition through portability, gaining 30,221 more lines than a year prior and securing 267,651 net users in Q1 2025.
Movistar, after losing 50,731 net subscribers in Q1 2024, recovered with a net gain of 1,959 users in Q1 2025.
AT&T reduced its net customer losses due to portability by 19.25% compared to its previous high losses.
Overall Portability Trends
In Q1 2024, the four companies collectively received and donated approximately 3.65 million cellular lines.
In Q1 2025, the number of subscriptions dropped to 3.496 million, a 4.32% decrease in number portability, possibly due to higher consumer satisfaction with their existing service providers during that period.
Key Questions and Answers
- What is BAIT? BAIT, or Bodega Aurrerá Internet y Telefonía, is Walmart’s virtual mobile network operator.
- Why are portability numbers important? Portability numbers reflect consumer satisfaction and loyalty, as well as the effectiveness of each MNO’s strategies to retain or acquire customers.
- How did BAIT perform in Q1 2025 compared to Q1 2024? BAIT experienced a significant decrease in net cellular line acquisitions and user satisfaction, as evidenced by the 4.32% reduction in portability numbers.
