Coppel: Retail Chain Launches MVNO in Mexico

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Coppel: Retail Chain Launches MVNO in Mexico

Mobile virtual network operators (MVNOs) are increasing their share of the Mexican telecommunications market compared to the mobile telephony offerings of traditional operators. The Mexican retail chain will also be part of this market with the launch of its mobile brand Redi.

In the following Guinea Mobile article we explore the case of Coppel and its MVNO in Mexico.

About Coppel

Coppel is a company that started as a small goods and services store in New York, USA and now has more than 800 department stores in 15 countries.

Coppel launches its MVNO brand

A few days ago Coppel launched its mobile virtual network operator (mvno), called Redi, which will use the shared wholesale 4.5G network as its main network, connecting in roaming with Telcel and AT&T networks in order to obtain a greater reach throughout the Mexican country.

Red Compartida hosts more than 116 virtual mobile operators and currently covers around 70 percent of the country, reaching a national coverage of 90 percent of the population through other available networks.

Mobile Offer

The MVNO’s mobile telephony offer in Mexico will be divided into three main branches with different plans: mobile internet, mobile telephony and home internet.

The 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 1000 minutes for MXN 150.00 (US $ 7.36) and 20 GB plus 1000 minutes for MXN 290.00 (US $ 14.23) a month. Up to 100 GB of data at 20 Mbps speeds for home broadband use is also available for MXN 485.00 (US $23.80) per month.

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

With this new proposal, Coppel joins the battle to conquer a Mexican market led by Walmart Group, which holds 24 percent of the market share.

MVNOs as a customer loyalty strategy 

Mexico’s crowded MVNO market has a new entry. Coppel, is employing a time-tested strategy, trying to leverage its large and loyal customer base to create a subscriber base for a virtual mobile service.

In fact Redi is offering extra benefits to active customers who have a good credit history at Coppel, this motivates customers to take an interest in Redi’s mobile tariffs and attract new customers.

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 be satisfactory for budget-conscious customers looking for an affordable but broadly usable mobile product. 

On the other hand, its mobile tariff prices such as 20 GB per month with 1000 voice minutes per month for less than US $15, to take one plan level as an example, should be adequate for many of its users. The recharge promotion that lasts approximately seven months will also help penetrate the market.

Opportunities

One thing that would help Redi reach its potential is synergy with Coppel’s core business. Offering promotions on products sold in its stores, advertising its products and offers through the mobile virtual network operator and other similar marketing efforts would be excellent ways to ensure that the MVNO brand grows and thrives alongside the parent brand. But perhaps these opportunities are already being explored by Coppel.

We remind you that you too can have your own mobile offering to meet market needs or provide an innovative solution in today’s world. Contact us to get started with your own white label mobile virtual network operator.

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