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Friday, October 25, 2013
Tuesday, October 15, 2013
Why MVNOs are Gaining Momentum
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.
Splendid
Service
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.
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