In modern times, the average consumer wants to have several options for each item that they buy or each service that is rendered to them. The telecommunications market is no exception to this rule, as cell phone users have been choosing MVNOs over standard service providers at an increasing rate. Currently, a little over 10% of mobile users use an MVNO carrier. In just over a decade, this new type of service has begun to give major wireless carriers a run for their money. In fact, some experts are saying that new MVNO innovations are in a position to disrupt the market once again.
Understanding the Popularity of MVNO Carriers
There are numerous MVNOs available to the average consumer, but some are becoming more popular than others. Carriers such as Boost Mobile, Virgin Mobile, and TracPhone are making it easier for users to join the Information Age. The advantage seen by many consumers is the fact that there is no contract needed for these cellular devices. People can choose between a prepaid agreement and a pay-as-you-go plan, never worrying about steep fees that come with a standard mobile contract. Perhaps because of this, these three MVNOs make up nearly half of the prepaid market in the United States.
Low Cost, High-Tech Models
The competition is being drastically reduced in some areas due to the fact that popular MVNOs are offering low cost devices that have some pretty amazing capabilities. On top of that, there are even some MVNOs that have implemented a Bring-Your-Own-Device program which allows mobile users to essentially recycle their devices when they change carriers. This option allows users to activate new service on an old handset via serial number, often saving people hundreds of dollars. Because of these two factors, many conventional carriers are losing vast amounts of profits that were otherwise generated by the consumer purchasing handsets.
Cutting out the Middle Man
One of the most popular trends among reputable MVNOs is the practice of bypassing the retailer in exchange for direct marketing methods. Consumers save even more money this way because they are able to bundle products and services together, creating a no-contract plan that works well for their personal or professional needs. In addition, MVNOs can offer lower costing devices and plans to consumers because of their innovative marketing practices. By using things like online distribution, multi-level marketing, social media platforms, and other Web marketing techniques, MVNOs are able to offer a superlative alternative to conventional mobile device carriers.
When MVNOs first came onto the market, the services rendered were less than perfect. However, many MVNOs are now offering dual-mode devices which have cellular and Wi-Fi capabilities. This cuts down on the amount of money that the average consumer has to spend on a handset, especially those who wish to purchase technologically advanced devices. Because of the benefits that the average consumer seems to become privy to after using an MVNO, it seems that these carriers are gaining rightful momentum in the market.