Mexican Retail Chain launches MVNO

Mexican Retail Chain launches MVNO

Mexican department store chain Coppel has become the latest retail outlet to launch an MVNO on the Altan Redes network, according to a report. The MVNO, called Redi, uses the Red Compartida wholesale 4.5G shared network for its coverage, complemented by Telcel and AT&T networks where Red Compartida is not available. Red Compartida hosts over 116 MVNOs and currently covers around 70 percent of the country, reaching a national coverage of 90 percent of the population via other available networks.

Plans available at launch range from 2 GB of data plus 500 minutes of calls for MXN 60.00 (US $2.95) a month, 5 GB plus 1,000 minutes for MXN 150.00 (US $7.36) and 20 GB plus 1,000 minutes for MXN 290.00 (US $14.23) a month. Up to 100 GB of data at speeds of 20 Mbps for home broadband use is also available for MXN 485.00 (US $23.80) a month.

By way of a launch promotion available until the end of 2022, any customer who tops up MXN 300.00 (US $14.72) will be given 3 GB of data plus unlimited calls and SMS for 7 days.

Tarifica’s Take

The crowded Mexican MVNO market has a new entry. Coppel, employing a strategy that by now is quite well tested by time, is attempting to leverage its large and presumably loyal customer base to create a subscriber base for a virtual mobile service.

While the offering is not 5G and therefore lacks the cutting-edge appeal of the latest network technology, its 4.5G speeds are likely to prove satisfactory to budget-minded customers seeking an affordable yet widely usable mobile product. And the price appears to be right—20 GB a month with 1,000 voice minutes per month for under US $15, to take one plan tier as an example, should suit many among the lower-end users. The top-up promotion lasting approximately seven months should also help with uptake.

One thing that would help Redi reach its potential is synergy with Coppel’s main business. Offering promotions on goods sold in its stores, advertising its products and deals via the MVNO, and other such marketing efforts would be excellent ways to ensure that the MVNO brand grows and flourishes in tandem with the parent brand. But perhaps such opportunities are already being explored by Coppel.