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business 38d ago

Telcel Gains 91,000 Users but Loses 482,000 Prepaid Customers in Q1 2025

Telcel Gains 91,000 Users but Loses 482,000 Prepaid Customers in Q1 2025

The recent subscriber data confirms the continued impact of Mexico's phone registration policy, which has caused user migration toward WhatsApp and e-SIMs due to mistrust and safety concerns. This trend could intensify if compliance rates do not improve, leading to further shifts in market dynamics. Next steps include the authorities' response to low compliance and the telecoms' adaptation strategies to stabilize their customer bases.

Telcel experienced a net loss in prepaid customers during the first quarter of 2025, adding 91,000 postpaid users but losing 482,000 prepaid subscribers, according to Expansion MX. This shift reflects the impact of Mexico’s new phone registration policy implemented by the Comisión Reguladora de Telecomunicaciones (CRT) on January 9, which requires all mobile lines to be registered by June 30.

The overall subscriber base for Telcel reached 84.3 million by the end of March 2025, showing a marginal annual growth of 0.4%. However, the significant prepaid customer decline highlights challenges driven by resistance to the phone registration policy and regulatory strain, as users hesitate to comply with the new rules that require linking personal data.

Mobile operators like Telcel and AT&T have responded by launching campaigns to increase user awareness and encourage line registration, with only 18.7% of the country’s estimated 161 million mobile lines registered as of early April, far below the threshold needed ahead of the deadline. The low compliance has prompted concerns over potential disconnection risks on unregistered lines.

Facing both economic pressures and regulatory challenges, Telcel and AT&T are adjusting their strategies to retain prepaid users by offering incentives such as Amazon promotions and unlimited roaming to maintain customer loyalty and prevent shifts to competitors. Telcel’s prepaid base still makes up 81.1% of its total customers, underscoring the importance of this segment.

The unfolding situation will hinge on whether registration rates increase sufficiently before the June 30 deadline to avoid widespread service disruptions. Regulators’ ability to advance communication and streamline the registration process will be key to stabilizing subscriber figures and maintaining continuity in Mexico’s telecom market.

Developments · 45d ago

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