Category: Mobile Phone Service

Consumer Cellular Being Sold To A PE Firm

Christian

The private equity firm GTCR is planning to purchase a majority stake in the carrier Consumer Cellular for 2.3 billion dollars. With roughly four million subscribers, the purchase price comes out to over $500 per subscriber. The deal is expected to close in late 2020.

I don’t know what source Mike Dano of Light Reading is relying on, but he seems to have insights into the details of the sale:

After a bidding war that involved Dish Network, Altice USA, Ultra Mobile, a group led by Boost Mobile founder Peter Adderton and others, Chicago private equity company GTCR has purchased Consumer Cellular for around $2.3 billion.

A year of acquisitions

The wireless market in the U.S. has seen a lot of movement lately. Sprint, Ting, Boost, Consumer Cellular, and a whole bunch of brands owned by TracFone have either been acquired in the last year or are in the process of being acquired.

The latest deal with Consumer Cellular presents interesting contrasts with the acquisition of Boost Mobile. DISH paid about 1.4 billion for roughly 9 million Boost subscribers. The cost per subscriber in the Boost acquisition came out to about $150, roughly one-fourth of the cost per subscriber in the Consumer Cellular acquisition. Consumer Cellular’s lower churn rate may explain some of the discrepancy.

Boost’s Low-Cost Plans Now Available Online

Christian

Earlier this year, Boost launched two low-cost plans that were only available in stores. Now, the plans are available online also. Both plans include unlimited minutes and texts. The plans differ in their data allotments:

  • 1GB for $10 per month
  • 2GB for $15 per month

SIM cards for these plans come with a one-time cost of $10. Only new customers who bring their own devices are eligible to sign up.

The 2GB plan is similar to T-Mobile’s 2GB Connect plan that also costs $15 per month. I don’t see a strong case for choosing Boost’s 2GB plan over T-Mobile’s 2GB plan.

I find Boost’s 1GB plan more exciting. It’s among the cheapest, mainstream plans on the market today. It’s an awesome option for light data users that don’t need extensive coverage.

Double data

Boost is running a promotion where customers who purchase one of these plans will get double the usual amount of data for the first three months of service. The $10 per month plan will include 2GB of data for the first few months, and the $15 per month plan will include 4GB of data.

I’m not a big fan of promotions that involve extra data for a short period. Subscribers that benefit from the extra data are likely to find their data allotments insufficient after the promotional period. Subscribers that are well-matched to the plans are unlikely to need extra data in the first place.

Thanks to Dennis Bournique for sharing this news on Twitter.

Verizon To Acquire Bluegrass Cellular

Christian

Verizon is planning to acquire over 200,000 subscribers and some assets from Bluegrass Cellular, a network operator in central Kentucky. In comparison to recent mergers and acquisitions in the cellular industry, this latest acquisition is small. Bluegrass subscribers represent less than 0.1% of subscribers in the U.S. market.

Earlier this year, I was surprised to see a company as small as Bluegrass on the short list of only eight carriers that support the latest Apple Watches. I wonder if Bluegrass only made the list because an acquisition by Verizon was in the works.

The planned acquisition will have to be approved by the FCC. Verizon expects the deal to close in late 2020 or early 2021.

Verizon 5G Updates For Samsung Galaxy Phones

Christian

On Tuesday, I posted about Verizon’s launch of low-band 5G. I mentioned that my 5G-compatible phone was still connected to 4G even though I was supposedly within the coverage area for Verizon’s 5G.

As it turns out, a handful of 5G-capable devices need updates to work with Verizon’s low-band 5G. Yesterday, software updates became available on several Samsung Galaxy phones sold by Verizon:

  • S20 5G UW
  • S20 Ultra 5G
  • S20+ 5G
  • Note20 5G
  • A71 5G UW
  • A51 5G UW

After installing an update, my Galaxy S20 connected to Verizon’s 5G without trouble. Note that software updates may not be available yet for those who purchased one of the phones on the list from a retailer other than Verizon.

US Mobile’s Low-Cost Plans

Christian 2 Comments

US Mobile is a low-cost carrier that offers service over Verizon and T-Mobile’s networks. In the last few months, US Mobile launched two plans that look like great deals for subscribers that opt for Verizon’s network:

  • $15 per month – Unlimited minutes and texts + 2.5GB of data
  • $30 per month – Unlimited minutes and texts + 10GB of data

US Mobile charges more in fees than most of its competitors. The final cost of these two plans will probably be about $5 per line higher each month than the base prices.

I often think of T-Mobile’s Connect plans and Mint Mobile’s 3GB-8GB plans as the cost leaders in the U.S. wireless market. While these plans have excellent prices, coverage on these plans isn’t as good as the coverage offered by Verizon’s network.

US Mobile’s plans are more expensive than Mint’s plans and T-Mobile’s Connect plans, but the price differences are relatively small. US Mobile may have some of the best options for people that want extensive coverage but also want cheap service. I’m planning to test and review one of the new plans soon.

Visible’s Plans For 5G

Christian

Visible, a flanker brand of Verizon, just shared details about its plans for 5G service (hat tip to Dennis Bournique who tweeted about the news).

Visible will soon offer 5G service for phones in the iPhone 12 line. 5G service for some Android phones will be available a bit later.

5G won’t cost extra, but Visible suggested it may impose a speed cap (emphasis mine):

We believe that people deserve a better phone service experience, which is why we’re including 5G, with speeds up to 200 Mbps, as part of our core plan at no additional cost. No hidden fees, no forcing you to upgrade into a different, secretly-more-expensive plan.

I’m not confident the 200Mbps cap will be enforced, at least initially. In the past, Visible mentioned a 5Mbps limit on hotspot speeds, but the company didn’t strictly enforce the limit.

It looks like Visible’s 5G service will include both Verizon’s sub-6 5G and Verizon’s millimeter wave 5G:

At launch, 5G will be available for Visible members where Verizon 5G coverage is available.

Verizon’s Massive 5G Expansion

Christian

Today, Verizon announced a huge expansion of its 5G service.

More millimeter wave

According to today’s press release, Verizon added ultra-fast, millimeter wave 5G service to parts of 19 cities, 19 stadiums, and 6 airports. In total, millimeter wave service from Verizon is now available in parts of 55 cities and 43 stadiums.

Nationwide, low-band 5G

Verizon also announced that it’s now using dynamic spectrum sharing (DSS) to offer slower, low-band 5G to over 200 million customers.1

With DSS, when customers move outside Verizon’s 5G Ultra Wideband coverage area, their 5G-enabled devices will remain on 5G technology using lower bands of spectrum.

According to Verizon’s coverage map, the low-band 5G service is available in most densely populated areas, but only a minority of the U.S. by land area. Here’s a screenshot from the map today:

Verizon coverage map showing areas with 5G coverage

I’m writing this post from an area allegedly in Verizon’s 5G coverage profile. My Galaxy S20 5G phone is still showing a 4G connection.

Carrier aggregation

Today’s press release also includes a boast about Verizon’s recent achievements with bleeding-edge carrier aggregation technology:

Using carrier aggregation, a technology that combines multiple channels of spectrum to provide greater efficiency for data sessions transmitting over the wireless network, Verizon combined eight separate channels of mmWave spectrum to achieve record-setting multi-gigabit speeds in parts of some cities. Using this technology, customers will see double the download speeds they have historically experienced on 5G Ultra Wideband, with peak speeds up to 4Gbps possible in some locations.

Tello After The T-Mobile & Sprint Merger

Christian 1 Comment

The carrier Tello has offered some of the best prices in the industry for a while now. Until recently, the major downside of Tello was that it ran over Sprint’s lackluster network.

Ever since the merger between T-Mobile and Sprint closed, I’ve been wondering what the future would look like for Tello. On Friday, Tello shared a blog post that shed some light:

  • Tello plans to start implementing service over T-Mobile’s network in late 2020.1
  • Tello does not plan to change its pricing structure at this time.2
  • Sprint-only service is expected to be available until at least mid-2021.3
  • Sprint-only phones may see a big decline in the performance of data service before mid-2021.4

Phone compatibility with T-Mobile

Fortunately, many Tello subscribers already have phones that are compatible with T-Mobile’s network. High-end phones purchased in the last few years are particularly likely to work with T-Mobile.

If you bought a phone in the past 2 years — such as a recent iPhone or Galaxy — it likely already has support for both networks. Same goes for iPhone XR, XS, or later that should be good for the full T-Mobile experience, but devices older than 2018 may not be able to tap into the full capabilities of the new network.

Tello recommends using phones that support LTE bands 2, 4, 12, 66, and 71 along with VoLTE. Customers without compatible phones will probably need to upgrade their devices if they want to remain with Tello after the legacy Sprint network shuts down.

The long term

Tello has said it won’t raise prices, but I don’t think that’s a long-term commitment. I wouldn’t be surprised if we see a price hike by the end of 2021. Tello will be more appealing with the expanded coverage offered by T-Mobile’s network. Additionally, the market for low-cost service is likely to become less competitive as Sprint disappears and large companies buy out a number of MVNOs.

While we may see a price increase eventually, I’m tentatively excited for Tello’s future. T-Mobile’s network is likely to offer Tello subscribers a far better coverage experience than Sprint’s network ever could.

US Mobile Improves Fee Transparency

Christian 1 Comment

In the past, I’ve been critical of the carrier US Mobile hiding fees.

I now want to give US Mobile credit for adding a fee disclosure to its website (hat tip to Stetson Doggett for pointing out the change):

Fee disclosure screenshot

While the new disclosure might still count as “in the fine print,” it’s a huge improvement. US Mobile used to avoid acknowledging added fees until customers were near the end of the checkout process.

On Twitter, US Mobile’s CEO, Ahmed Khattak, raised an interesting point:

In many ways, I agree with Khattak. Hidden fees continue to be a big problem with carriers other than US Mobile. However, I don’t think it was unreasonable for me to make more of a fuss about US Mobile’s hidden fees than other carrier’s hidden fees. US Mobile’s fees are often much larger than the fees charged by similar carriers (i.e., other low-cost MVNOs).1

Hidden fees generally

Going forward, I’m going to push against hidden fees throughout the industry. AT&T and Verizon continue to have significant hidden fees. T-Mobile is doing a bit better, but the carrier still has room for improvement.2 In the long run, I’d love to see all universal fees (i.e., fees that aren’t location-specific) built into plans’ advertised prices. If carriers could coordinate to simultaneously stop hiding fees, consumers would have better information, and carriers would experience limited downsides.3

Hacked Order Page At Boom! Mobile

Christian

The mobile virtual network operator (MVNO) Boom! Mobile was recently hacked. Ars Technica has a good article covering the incident.

A bit of malicious code was inserted in the checkout section of Boom’s website. Hackers used the code to skim payment information and credit card numbers from Boom’s customers. It looks like the malicious code was active for at least a few hours, possibly longer.

Boom’s website was running an outdated version of PHP. At this time, I don’t know what vulnerability the hackers took advantage of. I’m also unsure if this was an isolated incident or if Boom was affected by other security breaches.

I’m not sure Boom should have been handling its own payment processing. The carrier may have violated PCI DSS rules.

Update: A representative from Boom posted the following on Howard Forums:

Hey guys,

Thanks for checking in.

boom MOBILE deeply regrets this incident happened. From the start, we moved quickly to contain the incident and conduct a thorough investigation. We have found that the malware was located only on our shopping cart at boom.us and not on any of our other sites such as myaccount.boom.us which is used by customers to manage their billing. We encourage customers who may have made a purchase from www.boom.us between 9/30/20 – 10/5/20 to take the necessary precautions with their credit card company. This incident did not compromise any boom MOBILE accounts, saved payment or autopay details. Our saved payment/autopay system does not store any bank information and was verified to be safe. The credit card processor provides us with a secure token than can only be used by boom! MOBILE from our secure server. We are committed to protecting your data & privacy. We are PCI compliant and do not store financial data on our servers. Our shopping cart provider has ensured us our site is safe and the malware has been removed.