Tag: Ting

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Ting Plans to Drop T-Mobile and Add Verizon

Christian

Added 2/18/2020: Ting has found a way to continue offering service over T-Mobile’s network going forward. The parts of this post about Ting’s plans to migrate subscribers away from T-Mobile’s network are no longer accurate.

Yesterday, it was made public that the mobile virtual network operator Ting will soon cease offering service over T-Mobile’s network and begin offering service over Verizon’s network. It was also announced that Ting had extended its existing agreement with Sprint through September 2020.1

Dropping T-Mobile

Based on my understanding of yesterday’s SEC filing, I expect Ting will continue to offer service over T-Mobile’s network to existing subscriber until at least late 2019 and possibly late 2020.2 I’m less sure whether new customers will be able to sign up for service over T-Mobile’s network for much longer.

Adding Verizon

The new arrangement with Verizon is based on a five-year agreement that Elliot Noss, CEO and president of Ting’s parent company spoke positively about:3

“With Verizon, we will be adding the network that in our opinion has the best coverage and performance ratings in the U.S. Our contract with Verizon is better than that with T-Mobile in terms of rates, guarantees and other financial terms, which had negatively impacted Ting Mobile’s past performance. Finally, our dealings with Verizon to this point have been productive and professional. ​​So long-term, we see this as very positive news.”

Going Forward

I’ve previously raved about Ting’s customer support, but I’ve been reluctant to strongly recommend Ting since its rates have been fairly high for access to mediocre networks (Sprint and T-Mobile). If Ting’s rates don’t increase as a result of moving to Verizon’s higher-quality network, I think the case for recommending Ting becomes a lot stronger.

Ting anticipates some friction migrating its T-Mobile subscribers to new networks:4

“We estimate the costs of migration, primarily in the form of SIMs, shipping and device marketing, to be in the range of $3 million this year, and as much as $12 million over the following years. These variable costs are mostly in the nature of the marketing costs needed to move customers from one network to the other, and will mostly be in the form of inducements, device subsidies and/or a form of service credit. There’s not a lot of precedent to provide guidance on which marketing programs will be most effective, and we are also unsure of how many, if any, of our customers will refuse or fail to move. This makes the total migration cost difficult to estimate. Taking on as much as $12 to $15 million in unplanned, one-time costs, over a few years, is a lot for us. That being said, this move is key to putting the mobile business back on a stronger long-term footing.

When Ting drops T-Mobile, it will no longer offer service over a GSM network. I expect the move from T-Mobile (and GSM) to Verizon makes more financial sense today that it would have a few years ago. As operators gradually replace their 3G networks with LTE networks, support for older GSM and CDMA technologies is becoming less important.

Added 2/26/2020: Ting officially launched service over Verizon’s network in February 2020.