Membership ecosystems, subscription models, and roll-over data: Costco's mobile bet with WOZ
Costco Wholesale entered the mobile telecommunications market in Mexico with the launch of WOZ, a mobile phone network exclusive to its membership holders. With this launch, the warehouse club chain directly competes in the Mobile Virtual Network Operator (MVNO) segment against Bait, the connectivity division of Walmart de México.
Contracting model, pricing scheme, and differentiation
Unlike mass-market prepaid schemes, WOZ structures its offering through monthly subscriptions tied to each customer's membership level:
- Plans and rates by membership: The offering includes four pricing tiers based on the user's card type (Costco Gold Star, Executive Gold Star, Business, and Executive Business). Rates start at 159 pesos per month for 5 GB with the Executive Business membership, up to 189 pesos per month with the basic Gold Star membership. The top tier offers up to 55 GB for 499 or 549 pesos per month, depending on the executive profile.
- Data rollover (roll-over GB): Unlike Bait's fixed-validity recharges, WOZ allows unused gigabytes to be rolled over to the following monthly period, preventing the loss of data balances.
- 100% digital infrastructure (eSIM): Service contracting and provisioning operates exclusively through digital SIM cards (eSIM), requiring unlocked devices compatible with Band 28 (700 MHz) and Voice over LTE (VoLTE). The company specified that Google Pixel devices are not compatible with the network.
- Inclusions and international connectivity: All plans include 1,500 calling minutes, unlimited SMS, data-free social media (with restrictions on voice and video calls on WhatsApp), and voice and data roaming in the United States and Canada, as well as international packages in over 100 countries.
Comparison table: WOZ (Costco) vs. Bait (Walmart)
The connectivity strategy between the two retail giants reflects divergent business approaches:
- Access and target audience: WOZ is reserved exclusively for Costco members, while Bait markets its services to the general public through physical stores and digital channels.
- Commercial model: WOZ operates on a recurring monthly subscription with data rollover capabilities. Bait focuses on prepaid recharges with flexible validity periods (from 7 days to one year) and unlimited internet options.
- SIM format: WOZ is a 100% digital service via eSIM, while Bait offers both physical SIM and eSIM.
At next+ we believe that Costco's foray into mobile telecommunications through WOZ confirms the evolution of retail media and loyalty programs toward integrated, high-value service platforms. While Walmart uses Bait as a tool for mass digital inclusion and high-frequency traffic monetization through prepaid services, Costco seeks to increase its membership retention rate by offering a differentiated benefit (roll-over data and eSIM) aimed at a higher-income socioeconomic profile. For strategy, marketing, and technology executives, the contest between WOZ and Bait demonstrates that Mobile Virtual Network Operators have ceased to be mere resellers of minutes and have become strategic assets for loyalty and consumer behavior data capture.