I seen ads for cheap cell service like ting or mint using T-Mobile cell towers. How is it financially viable for networks to share the same service but one is selling for significantly cheaper, especially since these cheap services often say that their service is just as good?
In: Technology
For one, wireless carriers oversubscribe the shit out of their network. If they can build a network that can support 500 concurrent calls, they’ll sell 5000 user accounts knowing that not everyone is going to be using the system all the time.
Selling off capacity to an MVNO (mobile network virtual operator) is a no-brainer. The mvno basically pre-buys bulk minutes or bytes (or is contractually obligated to buy) and they have to handle all of the support and customer service. So T-Mobile gets paid for use of their network, but the other company has to handle all the end user support.
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