Cheaper Mobile Plans Aim to Dislodge Complacent AT&T, Verizon Customers
A handful of upstart wireless providers are offering monthly service plans at less than half the average cost of the major national networks, but complacent consumers seem to prefer to pay more rather than face the hassle of switching.
MobileX is a few weeks into the launch of an unlimited pay-as-you go plan starting at $20-a-month that includes an artificial intelligence-powered virtual guide that can anticipate a user's needs and customize plans based on their spending. Another new entrant is Boost Infinite, a $25 a month unlimited service introduced by satellite TV provider Dish Network Corp., which promises to never raise prices on customers that sign up early.
Each of these challengers are reselling service provided by one of the big three carriers — AT&T Inc., Verizon Communications Inc. or T-Mobile US Inc. — through wholesale agreements known as mobile virtual network operators or MVNOs. Aside from the network payments, the MVNOs have limited overhead, conduct business mostly online, and generally don't subsidize new phones they way bigger companies do, which helps keep the cost low.
Yet these seemingly compelling offers haven't gained much traction in an otherwise expensive US mobile market, despite offering service quality on par with the rest of the industry and far better prices. That's left the big three carriers not just unfazed, but thriving.
Consumers have been lulled into expensive plans with unlimited data, free phones and complementary streaming services, says MobileX founder and Chief Executive Officer Peter Adderton.
“If you wake up the lazy people, the big carriers are going to have a problem,” Adderton said. “And our business is to wake them up.”
Adderton also founded Boost Mobile in 2001 with hope that
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