Background on the New Phone Registration in Mexico
Starting October 1, 2025, a new regulation in Mexico will require the registration of all cellular lines nationwide, linking each active number to an official document containing the Clave Única de Registro de Población (CURP). This initiative aims to support federal efforts in combating crimes committed through telephony usage.
Key Players Involved
The Agencia de Transformación Digital y Telecomunicaciones (ATDT) has been conducting pilot tests since September 1, 2025, with the support of Telcel, AT&T, Movistar, Altán Redes, and BAIT. These companies manage over 151 million cellular lines in Mexico.
UBS’s Assessment of Challenges
According to UBS Investment Bank, Telcel and other larger operators like AT&T will find it easier to comply with the new registration requirements compared to BAIT and Altán Redes due to their greater financial muscle and technical capabilities.
Altán Redes’ Situation
Altán Redes, a wholesale telecommunications operator with its own network and spectrum, would face more significant challenges in acquiring the necessary technological and financial resources to collect user data. This is because they would need software or hardware licenses for data collection from mobile virtual network operators (MVNOs), who might otherwise need to invest heavily to comply with the new legislation.
BAIT’s Situation
BAIT, primarily serving prepaid users, could encounter difficulties in registering its users. If BAIT fails to collect user data, it risks losing market share in active lines, potentially impacting cellular penetration levels in Mexico and the government’s connectivity policies.
BAIT vs. IFT User Count Discrepancy
Although BAIT reported having 21.5 million mobile users by the first quarter of 2025, the Instituto Federal de Telecomunicaciones (IFT) placed BAIT’s customer base at 8.4 million active accesses during the same period.
Potential Impact on Smaller Operators
UBS believes that smaller operators like BAIT might struggle more with the new regulation due to the complexity and cost of acquiring software and commercial requirements for collecting user information. Even AT&T could face some complications, though BAIT might be more affected by the new federal regulations due to its association with Walmart’s Plan México.
BAIT’s Customer Retention Challenge
UBS points out that BAIT’s customer retention could be challenging because some potential clients are Walmart shoppers who receive a free SIM card immediately after making a purchase at Walmart stores. The new requirement might lead to increased customer loss, reducing client activations.
Key Questions and Answers
- What is the new phone registration in Mexico about? It’s a regulation requiring all active cellular lines to be linked with an official document containing the Clave Única de Registro de Población (CURP) to combat telephony-related crimes.
- Who are the key players involved in this new registration? Telcel, AT&T, Movistar, Altán Redes, and BAIT are the main telecommunications companies participating in the pilot tests.
- Why might Telcel and AT&T find it easier to comply with the new regulation? They have greater financial resources and technical capabilities, making it easier for them to acquire necessary software and hardware for data collection.
- What challenges does Altán Redes face in complying with the new regulation? As a wholesale telecommunications operator, Altán Redes needs to secure technological and financial resources to collect user data from MVNOs, which could be costly.
- Why could BAIT struggle with the new phone registration? BAIT primarily serves prepaid users, and acquiring user data is crucial for maintaining market share in active lines. Failure to do so might impact cellular penetration levels and the government’s connectivity policies.
- What is the discrepancy between BAIT’s and IFT’s user count? While BAIT reported 21.5 million mobile users, the IFT placed their customer base at 8.4 million active accesses.
- Why might smaller operators like BAIT find it difficult to comply with the new regulation? The complexity and cost of acquiring software and commercial requirements for collecting user information could pose challenges for smaller operators.
- How might the new regulation affect BAIT’s customer retention? The new requirement could lead to increased customer loss among Walmart shoppers receiving free SIM cards, reducing client activations for BAIT.
