The package allows users to access the social network with a defined rate and data

TikTok is undeniably the most popular social network of the moment, especially among the younger generations and for Telcel (Mexican wireless telecommunications company) it has become an opportunity to grow its user base.

Data provided by Marketing News indicates that TikTok has 500 million users, of which only 150 million are Chinese.

Although the use of this application has been associated with young users, the truth is that only 20 percent of social network users are between 13 and 18 years old.

More interesting is knowing that user spending on purchases within the same application increased 275 percent between October 2017 and October 2018.

For Telcel these figures have been sufficient to launch its Amigo TikTok package, which allows access to the social network with a defined rate and data so that users do not spend their data when browsing the aforementioned platform.

It is important to mention that this consumption is only applicable when it is used in the Mexican market, so it cannot be used when the user is in the United States or Canada.

Beyond the few or many benefits that this plan offers, the interesting thing is that Telcel has taken a step forward from its competition.

Despite the relevance that TikTok has among Mexican users, so far, no mobile operator would have considered the Chinese application in its unlimited social media plans. Telcel becomes the first in its market to take advantage of the popularity of TikTok.

With this, the firm could be looking to improve one of its indicators that was already down since last year: the profitability of its users.

It is important to mention that in the middle of last year, although the user base of Telcel – a brand owned by America Móvil – was on the rise, it is true that competitors such as AT&T were more profitable if their performance was read by earnings per user.

According to data published by El Economista at that time, Telcel was ranked as the main operator by number of users, adding a million new subscribers during the first quarter of 2019, of which 767 thousand were postpaid.

On the other side, AT&T lost 69 thousand users within this modality, at the same time that Movistar said goodbye in the same segment of 73, 400 users.

However, despite the losses recorded in its user base, AT&T ranks as the operator with the highest consumption per user in the country, which is calculated at an average of 160 pesos per month.

The figure exceeds 143 pesos a month registered by Telcel and remains well above the 50 pesos reported by Movistar.

This plan also comes at a time when America Móvil reports significant user losses due to the crisis caused by the coronavirus.

According to the data published in the second quarterly report of 2020, America Móvil pointed out that during the period of confinement it stopped providing service to 1.7 million users in Mexico, 1.0 million in Peru and Central America each, and 476 thousand in Ecuador, because these clients found it difficult to recharge.

Substantially, all of our operations lost prepaid customers, while most of them also lost postpaid subscribers, the company noted, while detailing that confinement measures primarily caused a slowdown in mobile revenue growth that was similar in the prepaid and postpaid segments. The impact on prepaid income was proportionally stronger in those countries and regions where repayment services are more frequent, including Mexico and the Dominican Republic.

The accessibility of this plan as well as the market to which it is directed could give Telcel a new position, which, like the rest of the brands.