Home Technology What crisis? Consumption of cellular services in Mexico soars in 2018

What crisis? Consumption of cellular services in Mexico soars in 2018

With everything and the presumed uncertainty generated by the electoral year and the inflation recorded in our country, 2018 has reported a spectacular first quarter for cellular service providers and mobile devices.

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Cellular services in Mexico 2018
Cellular services in Mexico 2018

While several specialists were anticipating a year of uncertainty caused by the hectic process leading to the elections on July 1 and forecasts of conservative consumption due to inflation and phenomena such as the increase in the price of gasoline, the contracting of cellular and mobile services is registering the best annual start since 2012.

This is stated in the report “Mobile Segment, 1Q-2018: Revenues, Lines and ARPU” made by The Competitive Intelligence Unit (The CIU) which states that during the first quarter of 2018 the mobile services consumption segment recorded a growth of 7.4 %, a figure that was not seen from the same period of 2012.

Similarly, the annual growth in subscribers for cellular services reached 3.4%, which also represented an acceleration with respect to the previous year.

The revenues of the sector came to an amount of 63,944 million pesos, which is explained by the report, by an expansion of the subscriber base, an increase in data consumption and strong growth in sales by teams (22.3% per year ), a category still largely dominated by Telcel, but with growing competition from operators such as AT & T and Movistar.

Telcel accounts for revenues of $ 44,756 million pesos, an increase of 10.3% with respect to that reported in the same period of 2017. For its part, Movistar added revenues of $ 6,375 million pesos (fall of 5.9% year-on-year), strongly impacted by the decrease in interconnection rates. In turn, AT & T recorded $ 12,564 million pesos, increasing its revenues 4.6% in the year, growth considerably less than what it had been showing in past quarters.

More lines and more subscribers

During the same period of 2018, the mobile market reached 116.4 million subscribers in our country, which represented a growth of 3.6% over the same period last year, making it the most powerful of the last 5 quarters.

Likewise, the growth of subscribers behaved differently according to each operator. Telcel grew only 1.4% per year, reaching 74.0 million lines, while Movistar decreased 1.5% in the year to register 25.3 million. Both operators have focused on increasing their postpaid base, which represents 17.5% and 9.1% of the total respectively.

On the other hand, AT & T showed a surprising 24.1% annual growth, reaching 15.6 million customers, focusing mainly on the addition of prepaid lines, which already represent 63% of its base.

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