For years, the prepaid model—locally known as the *recarga*—served as the primary growth engine for Mexico’s telecommunications giants. But the landscape is shifting. Recent data suggests that the segment has transformed from a reliable asset into a strategic headache for incumbents Telcel and AT&T, as they struggle to maintain their grip on a price-sensitive demographic.
The numbers reveal a cooling market. Telcel, the América Móvil subsidiary, saw its modest growth of 0.9% in late 2023 slip into a 0.6% contraction by the end of 2025. AT&T Mexico followed a similar trajectory, with its growth rate halving from 2.8% to 1.4% in the same period. While prepaid users generate the lowest average revenue per user, their sheer volume makes them indispensable; they represent 81.1% of Telcel’s customer base and nearly 72% of AT&T’s.
The erosion of the old guard’s dominance is largely driven by the rise of Mobile Virtual Network Operators (MVNOs) like Bait, which have undercut traditional carriers with aggressive data offerings and lower barriers to entry. This competitive pressure, compounded by the lingering effects of inflation and new regulatory requirements for phone registration, is forcing a tactical pivot. To retain loyalty, the giants are now being pushed to look beyond simple connectivity, grappling with a market that values flexibility and data over legacy brand loyalty.
With reporting from Expansión MX.
Source · Expansión MX
