Based on a survey of 1,000 people published by whistleOut, U.S. consumers are missing out by not using an MVNO to provide them with their cellular service. An MVNO is a Mobile Virtual Network Operator. These firms do not have their own network infrastructure such as cell towers. They do not own spectrum, and you're probably wondering how they can offer wireless service. It's a simple matter of buying service at wholesale and selling it at retail.
If you switch to an MVNO, you'll probably end up using a network belonging to one of the Big 3
An MVNO is your typical prepaid wireless company. They buy service from T-Mobile, AT&T, or Verizon, or any combination of the three. Here's an interesting fact. If you drop your unlimited plan from one of the Big 3 and replace it with service from an MVNO, you will most likely continue to have your calls and data routed over Verizon, AT&T, or T-Mobile. And you'll be paying much less for your wireless service each month.
The survey shows that the average savings for an American family switching to an MVNO is $2,283 a year and that 83.2 million Americans are overpaying for cellular service. Now it is true that not all U.S. smartphone users need to switch to an MVNO, but if you use 20GB of data or less per month and spend most of the time on your phone using a Wi-Fi connection, you don't need to be subscribed to a premium unlimited plan from a major wireless provider.
Potential damage to Big 3 carriers from customers switching to MVNOs. | Image credit-whistleOut
A family of four leaving Verizon's Unlimited Plus plan and switching to a Mint unlimited family plan can save $720 a year according to whistleOut. To reiterate, MVNOs operate on the same networks as major carriers, so your coverage is the same. In some cases, the MVNO you switch to may even be owned by the carrier you’re dumping. For example, Mint Mobile is owned by T-Mobile, Visible by Verizon, and Cricket Wireless by AT&T.
This is why more people don't switch to an MVNO
So why aren't more consumers taking advantage of the low prices offered by MVNOs? Well. ignorance is a huge reason why. A whopping 61% of Americans did not know that MVNOs use the same networks as the Big 3. The survey responses also show that the time is ripe for MVNOs to take huge chunks of business away from the Big 3:
58% of Big 3 customers have expressed that they would consider switching to a different carrier.
22% of Big 3 customers are already either shopping around or are in the process of switching.
34% of Big 3 customers say they'd consider switching to an MVNO within the next year.
42% of Big 3 customers say their phone bill has gone up in the past year (7% higher than average).
32% (nearly one third) of Big 3 customers think they're overpaying for their phone plan.
Only 1 in 10 people think they're getting a good deal on their phone plan.
Some MVNOs even offer services such as extra mobile hotspot data and international roaming.
Would you ever consider switching to an MVNO?
Yes. I can save some money.
90.91%
No. I still have concerns.
9.09%
The analysis done by whistleOut forecast that if American consumers dropped their current Big 3 carrier due to high prices, AT&T could lose 69.4 million subscribers. The same report says that T-Mobile could lose 75.9 million customers, and the potential loss for Verizon could amount to 84.7 million users.
Many consumers still have concerns about using an MVNO and some of these include:
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I've been with my current carrier a long time and am loyal to that brand - 45%
I'm worried about decreased quality of coverage - 28%
I don't feel like doing the research for a new plan - 20%
I believe that my monthly phone bill is already low enough - 16%
I don't know how to switch carriers or don't know how to find the best plan - 15%
I don't want to lose my current plan perks - 14%
I'm worried about decreased quality of customer service - 14%
I'm not sure what MVNOs are or haven't heard of them before - 12%
I don't know how much data I need - 10%
While these concerns can be valid, I believe that as long as you don't subscribe to an MVNO's lowest-priced plan, you will get the wireless coverage and speeds you want and still save enough money to make switching pay off.
Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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