Virgin Mobile’s Latin American team is close to launching an MVNO in Mexico following reforms to the country’s regulatory regime.
The Richard Branson-backed MVNO has the required approvals from the authorities and is close to agreeing a deal with a…
Virgin Mobile’s Latin American team is close to launching an MVNO in Mexico following reforms to the country’s regulatory regime.
The Richard Branson-backed MVNO has the required approvals from the authorities and is close to agreeing a deal with a network operator.
A Virgin spokesperson said that the change in Mexico’s regulatory environment, enacted by president Enrique Pena Nieto, influenced its decision to enter the country. There is now a genuine will to promote competition and more willingness on the regulator’s part to support MVNOs, the spokesperson said.
Mexico could become Virgin’s third MVNO market in Latin America. It already has operations in Chile and Colombia where Virgin offers services over Telefonica’s networks. The spokesperson would not name the operator Virgin was in advanced negotiations with in Mexico.
Services could launch early next year.
The British company is also pursuing an entry in the Brazilian market. The situation is complicated in that country due to the need to find an agreement with a network operator before seeking regulatory approval. Telecom regulator Anatel would then consider the application for a number of months before Virgin could launch.
Virgin’s expansion plans in the region do not stop at Brazil and Mexico, and the spokesperson confirmed that it was in dialogue with a number of different operators across the region.
The reforms in the Mexican market centre on tackling America Movil’s market dominance. Its Telcel brand controls approximately 70% of the mobile market and fixed-line operator Telmex has an 80% market share.
Telefonica’s Movistar brand is the next biggest challenger and last year agreed to share networks with Iusacell, a smaller operator backed by television magnate Ricardo Salinas.
