Why do the major cellphone service providers like Verizon, AT&T, and T-Mobile benefit from owning “cheap” services like Visible, Cricket or Mint?

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Are these services extremely throttled? Are they on separate towers where the service isn’t as great? Please help me understand.

In: Economics

7 Answers

Anonymous 0 Comments

selling different products at different price points to capture more of the market.

the budget MVNOs are often at a lower data priority than “mainline” customers: if a particular area is facing congestion, they will be among the first (after home internet customers) to be throttled back.

Data/voice limits may also be a lot lower, international roaming even in Canada/Mexico may be more expensive/limited, international calling rates might be higher, fewer or no bundled extras or hardware discounts, etc.

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