Background on Telcel and its Significance
Telcel, the third-largest mobile operator in Latin America by user volume, has experienced a net loss of 7,405 customers in April 2025 due to number portability. This is a significant event as Telcel had consistently gained net customers for 17 years since the introduction of number portability in Mexico in July 2008, while its competitors faced ups and downs.
The Impact of Number Portability
Although the loss seems minor for Telcel, considering its large user base, it is still relevant. The company has not experienced such a net loss since number portability was introduced. José Otero, director of telecommunications consultancy ICT Development Consulting, explained that losing customers does not necessarily mean negative consequences for the company, as the profile of lost customers is unknown. He also mentioned regulatory asymmetry and economic factors that might have influenced consumers to choose more affordable services.
Telcel’s Recent Performance
Telcel had already struggled to regain postpaid users to 2020 levels, before the COVID-19 pandemic forced people to stay at home and change their mobile usage habits. April 2025 was another challenging month for Telcel, as competitors gained net users while Telcel lost more significantly than in April 2024.
Competitors’ Performance
- Movistar: Gained 1,599 net users and 95,877 clients for BAIT in the same period.
- AT&T: Lost 113,679 users, but improved service led to a decrease of 19,540 users switching to AT&T compared to the first four months of 2024.
Movistar as the Primary Gainer
From January to April 2025, Telcel lost 1.74 million customers, with Movistar receiving 43.88% (369,504), BAIT (Walmart) receiving 27.63% (218,404), and AT&T receiving 22.93% (178,504) of them. Izzi Telecom and Megacable also took 34,825 and 30,701 subscribers from Telcel, respectively. CFE Telecom moved 11,364 lines away from Telcel’s network.
Telcel’s New Service Plans
In response to these challenges, Telcel announced ten new postpaid service plans with 5G coverage, increased data allowances, unlimited minutes and messages for use in Mexico, the US, and Canada, and a cashback policy enabling customers to purchase more mobile data or even phones. These offers were introduced six months after the Mexican Federal Telecommunications Institute (IFT) implemented new regulations for Telcel as the dominant agent.
Key Questions and Answers
- What is the significance of Telcel losing customers? Although Telcel has a large user base, this loss is significant because it marks the first time in 17 years that the company has experienced a net loss since number portability was introduced in Mexico.
- What factors might have contributed to this loss? Regulatory asymmetry and economic factors, such as consumers seeking more affordable services due to Mexico’s 0.2% economic growth in the first quarter of 2025, could have played a role.
- How have Telcel’s competitors performed? Movistar and BAIT (Walmart) have gained net users, while AT&T experienced fewer losses than in the previous year. Izzi Telecom and Megacable have also taken subscribers from Telcel.
- What steps is Telcel taking in response? Telcel has introduced new postpaid service plans with 5G coverage, increased data allowances, unlimited minutes and messages for use in Mexico, the US, and Canada, and a cashback policy to attract new customers.
