Mint Mobile’s iPhone SE Promotion

Mint Mobile is running a promotion on the iPhone SE. For $720, customers can get an iPhone SE and two years of cell phone service on Mint’s 3GB per month plan. Customers who want more data can pay an extra $120 for 8GB of data or an extra $240 for 12GB of data.

Customers have the choice of either paying outright or paying 12-24 monthly installments through Mint’s partner Affirm. If a customer’s credit is good enough, they may not have to pay Affirm any interest. On a 24 month plan with zero interest, a customer would pay about $30 per month for the iPhone SE and Mint’s 3GB plan.

I recommend avoiding paying for phones on installment plans, and this latest promotion isn’t an exception. That said, there is something unusual worth pointing out here. Typically, I think Mint only lets customers finance phones through Affirm. With this promotion, customers can effectively finance both their phones and their service with Affirm.

The iPhone SE is usually priced at about $400. Mint’s promotional bundle has a base price of $720. Two years of Mint’s 3GB plan would typically cost $360. You can think of the promotion as discounting the iPhone SE’s price by $40 (from $400 to $360).

While I’m a big fan of Mint, I don’t think this promotion is a great deal. In most situations, I don’t think a savings of $40 justifies locking yourself into a long-term arrangement with a wireless carrier.

If you take advantage of Mint’s promotion, you’ll be charged a $32.50 recovery fee during checkout. This fee isn’t for the iPhone SE. It’s consistent with the recovery fee Mint usually charges on wireless plans.1

Link Roundup – 4/17/2020

  • The California Public Utilities Commission gave its after-the-fact thumbs-up to the merger between T-Mobile and Sprint. Steve Blum offers some good commentary.
  • Joe Paonessa explains the plans for Boost Mobile to begin integrating with T-Mobile’s network. The merger between Sprint and T-Mobile may ultimately lead to a better coverage experience for Boost’s subscribers.
  • Mike Dano discusses negotiations between T-Mobile and Shentel, a company with about a million wireless subscribers.
  • Theories about COVID-19 being caused by 5G have been making their way around. Karl Bode comments in the well-titled article 5G Isn’t Interesting Enough To Warrant These Stupid Conspiracy Theories.

Mint Mobile Makes COVID-19 Data Add-Ons Easier

In response to COVID-19, Mint Mobile began offering unlimited data at no charge to all its customers. Initially, subscribers who ran out of their regularly allotted data had to purchase 3GB data add-ons that would later be refunded.

Mint has now streamlined the process. Here’s an excerpt from a recent Reddit post by Rizwan Kassim, a co-founder of Mint Mobile:

We heard your feedback, and once we made the decision to extend the program – we rebuilt it in a way with an experience that’s more .. well, Minty. On Apr 15, whenever you purchase the data-bolton, if you qualify, the dollar cost will be $0. No credit card charge, no wallet pull. Easy. You’ll need the latest build of the app.

I thought Mint might have intentionally put a bit of friction in the data add-on process to deter abuse and waste. It looks like there’s a better explanation:

The idea was hatched, planned, got financial and brand approval, configured, launched and messaged the unlimited bolt-on offer in 36 hours, over a weekend by an entirely WFH staff. No joke. The fastest method was not to use our billing system, but to tack on a series of jobs that ran post-charge to refund the balances.

Mint has added some sensible eligibility terms for the free data add-ons:

  • Only subscribers who were customers before April 14 are eligible for free data add-ons
  • Subscribers that downgrade their plans lose their eligibility for free data add-ons

Black Wireless & Mango Mobile Fail To Deliver

Earlier this year, two brands owned by the operator Red Pocket, Black Wireless and Mango Mobile, began offering what looked like a great deal…While the offer looked amazing, I didn’t bother writing about it. I’d previously had bad experiences with the carriers’ parent company, Red Pocket, and this recent offer looked sketchy.

That’s how I opened a retrospective post about a seemingly too-good-to-be-true plan that Black Wireless and Mango Mobile were offering. In the post, I explained why I found the carriers’ promotional deal sketchy:

  • The descriptions of the offer were confusing and possibly contradictory.
  • While Black Wireless typically offered service over AT&T’s network, the promotion was for service over T-Mobile’s network. Black Wireless was doing a terrible job of conveying that information to potential customers.
  • I couldn’t understand how Mango Mobile and Black Wireless would be able to profitably sell cheap plans with data allotments so much higher than those offered by other carriers piggybacking on the same networks.

I ended my post by suggesting that I may have been too skeptical:

I was suspicious the promotion would end up as a fiasco that looked bad for Red Pocket. However, it looks like the company has sorted things out.

New developments

It turns out my skepticism was warranted. Subscribers that took advantage of the deal are having their plans canceled. Here’s the start of a message Black Wireless sent subscribers on the plan:1

Hello, this is Black Wireless. Unfortunately, we have forfeited our contract with our vendor for T-Mobile services due to business reasons. Your service will stop by April the 10th, thus we contacted you to see whether you wish to continue the service with us and in this case we will add a web credit on your online Black Wireless account so you can use the credit to purchase a new plan with a SIM.

“Due to business reasons” is an awfully vague explanation.2 While I’m not certain what happened, I’m suspicious Black Wireless and Mango Mobile were improperly reselling T-Mobile business lines to non-business consumers.3

Damage Control

A Reddit poster associated with Black Wireless commented in a thread about the new developments.

We apologize for any inconvenience…We are providing several options for the customers affected, which include switching to our legacy Black Wireless plans and/or refunds for the balance of the time (remaining months) after the period ending April 10th. Black Wireless has been in the telecom business since 1997 and the wireless business since 2011 and we are here to assist you to make this as seamless as possible. Black Wireless is based out of New York. Thank you for your time and be safe during this trying time.

It was good to see Black Wireless joining the conversation, but the comment frustrated me. A bunch of statements in the comment are misleading or only half true.

The people who eventually created Black Wireless existed in 1997, but Black Wireless did not exist yet. Further, Red Pocket took the reigns of Black Wireless in the last several years. While Black Wireless may technically be based out of New York, I feel like the commenter was trying to mislead people about how closely the company is tied to the U.S. I’m pretty sure the company Red Pocket offloads most of its operations to is based out of Chennai.4

In a second comment, the individual associated with Black Wireless gave some level-headed insights:

We did not lose any contract, but merely the plan we had with the underlying carrier due to unforeseen circumstances. We could only do our best at this point to assist our customers in order to make sure they get the service they require or if desired a refund. In this MVNO environment you must understand there are certain criteria we must adhere to and terms we cannot state in order to stay within our business requirements and guidelines with the underlying carrier and contracts/agreements.

If we take the comment at face value, it contradicts what Black Wireless told subscribers via text message: “Unfortunately, we have forfeited our contract with our vendor for T-Mobile services due to business reasons.”

While I’ve found the handling of the whole situation unprofessional, it looks like the companies involved are taking the right steps to offer refunds to affected customers.

Boost Mobile Launches Its Own $15 Plan

Earlier today, Boost Mobile, a flanker brand of Sprint, followed in the footsteps of many other wireless carriers and announced its own $15 per month plan that includes unlimited talk and text along with 2GB of data each month.

Boost made it clear that this is a short-term deal. Customers who take advantage of the promotion will see their monthly bill double after the first two months of service. Here’s a bit from today’s press release:

This limited-time offer, which also includes taxes and fees, mobile hotspot and 99% nationwide coverage with voice roaming, is available through May 12. After 60 days, the monthly plan moves to $30/month.

We now have several carriers offering a $15 per month plan with unlimited minutes, unlimited texts, and 2GB of data:

  • T-Mobile
  • Metro
  • AT&T
  • Cricket
  • Boost Mobile

In my opinion, the Boost Mobile offer is the least attractive among these plans since it combines both Sprint’s lackluster coverage and a promotional price that only applies for two months.1

Mint Extends Unlimited Data Through 5/14/20

Last month, I wrote about Mint Mobile offering its subscribers unlimited data at no extra charge from 3/14/2020 through 4/14/2020. I just got an email from Mint explaining that the carrier has extended the unlimited data through 5/14/2020.

Mint’s policies around the free data remain the same. Subscribers that use up all of their regular, allotted data can add more data in 3GB increments. Mint will initially charge for these 3GB data add-ons, but subscribers will be refunded within a day. To be eligible for additional data add-ons, a subsciber must have already used 95% of his or her last data add-on.

T-Mobile & Sprint Merger Officially Closes

To no one’s surprise, the merger between T-Mobile and Sprint finally closed this morning.1

With the closure of the merger, John Legere is stepping down from his position as T-Mobile’s CEO. Legere will be replaced by Michael Sievert, who was until now the COO of T-Mobile.

I continue to think the merger is going to be bad for consumers over the long term. However, we should see some things that are good for consumers in the short term, like the recently released T-Mobile Connect plans.