Sprint Allows LTE Service Over Mobile Virtual Network

Hugh Pickens writes "In the past, carriers like Sprint have placed restrictions on their Mobile Virtual Network Operators (MVNO) to prevent them from competing directly against the carriers. The MVNOs were forced to sell budget service and budget technology. But Businessweek reports that the Galaxy S III has began shipping to customers of MVNO Ting, officially making Ting the first carrier to offer an LTE service without owning an LTE network. 'All the market trends we're talking about today are allowing us to be competitive at the high end,' says Elliot Noss, CEO of Ting, adding that Sprint has stripped off the last remaining obstacles to MVNOs competing with it on equal terms. Virtual carriers are experimenting with new pricing models, such as Ting's metered voice and data plans, that run counter to the way big operators have always sold their services. So far, only a minority of customers finds these new types of models appealing, but it's a growing minority, says Noss. MVNOs all but died out in the last decade, victim to their own over-segmentation of the market and the only survivors were the ones who kept their focus on the budget prepaid segment like TracFone. But nine months ago, AT&T and T-Mobile started selling data and voice airtime by the bucket, which gives MVNOs much more flexibility in pricing. Even more significantly, carriers started working directly with MVNOs to craft unique plans in exchange for a percentage of the plans' revenues. In the meantime, prepaid operators such as Leap Wireless are already selling the iPhone, and it's only a matter of time before the economics are right for Sprint to lift its iPhone restriction as well. 'I'll put it this way: I would be disappointed if we didn't have the iPhone by next summer,' says Noss. 'That kind of holdback of iconic devices is beginning to make less and less [business] sense.'"

Comments

Staying Relevant

[rsmith-mac]

Unfortunately this isn't all that surprising. With the market failure of WiMAX in the US, Sprint has been put in a very bad position overall. At this point it's everything the company can do just to stay relevant, particularly when the big two (VZ and AT&T) are ahead of you in both coverage and LTE deployment and "little" T-Mobile has a lock on the cities by offering good prices combined with fast speeds (3G DC-HSPA+).

Meanwhile Sprint's network is still almost entirely composed of a last generation CDMA network, unless you're fortunate enough to be in Atlanta where their first LTE deployment is. Even then the performance sucks thanks to the fact that they are deploying their LTE network on such a high frequency.

Because of these reasons, expect to see Sprint do more "crazy" things like MVNO LTE. They're not going to win in a price war, a speed war, or a coverage war; they're going to have to keep throwing things at the wall until they find something that reverses their fortunes, if such a thing can be found in time.

It's only a minority because of Sprint

[sohmc]

So far, only a minority of customers finds these new types of models appealing, but it's a growing minority

As far as I know, Sprint is the only carrier that does this. If every carrier was forced to allow this type of competition, I'm sure it would become the majority.

I hate having to carry a contract with AT&T for two years. Phones are only discounted because you sign the contract. It would seem logical, then, that your monthly fee would decrease afterword but this is simply not the case.

Stop Feeding The Beast!

[Anonymous Coward]

Stop feeding the beast. You accepting a 2 year contract is feeding the beast. Stop it.