Ting Mobile transfers part of its leased spectrum from T-Mobile to Verizon

According to Light Reading, Ting Mobile, a small US mobile virtual network operator (MVNO), will transfer part of its leased spectrum from T-Mobile's network to Verizon's.

According to a statement from Elliot Noss, CEO of Ting's parent company, Tucows, the main reason for this change is the failure of T-Mobile and its proposed partner Sprint to finalize their merger and offer the promised benefits of the combined network.

Here's why Ting moves to Verizon: The small MVNO – in the first quarter of 2019, it had 284,000 subscribers – pbades to Verizon – the largest wireless service provider in the United States – because it can offer Ting better network coverage and better rates, both factors the most important for an MVNO.

Verizon attracts Ting's business because telecommunications has always touted the strongest network quality and customer experience. For an MVNO, this means it can offer users a consistent service – the same as they could get by partnering with Verizon – while taking advantage of the more nuanced pricing models used by these companies.

Ting, for example, does not use traditional monthly plans, but rather bills based on their actual usage. Thus, people who do not use services like SMS or voice calls do not have to pay for unused portions of a mobile plan. MVNOs take their place in the ecosystem through these differentiated plans that target primarily budget-conscious consumers or niche markets. The best network coverage at the lowest price is therefore a top priority.

By collaborating with Verizon, Ting will also get lower rates than T-Mobile. Noss said, "The company's deal with Verizon is better than the one with T-Mobile in terms of tariffs, warranties and other financial terms, which has had a negative impact on Ting Mobile's past performance. ". Verizon can probably afford better conditions because of its scale, the density of its network and the amount of excess bandwidth accumulated over the years through infrastructure investments.

What does it mean for T-Mobile: Although the loss of a small MVNO is not a big blow for a large telecom company such as T-Mobile, the reasoning behind Ting's decision reinforces the company's need to successfully merge with Sprint.

A combined T-Mobile-Sprint entity should have an incredibly robust wireless network. Indeed, it would combine two existing standalone networks – even with the badets that the amalgamated company is expected to sell as a condition of the merger, it would likely provide coverage equal to or better than that of Verizon and AT & T as a network.

The combined entity would also have the back-end capability to offer rates to MVNOs at levels similar to those of Verizon. The current uncertainty surrounding the merger is, however, detrimental to both T-Mobile and Sprint, as the former begins to lose ground, and both predict billions of investments in infrastructure and spectrum purchases conditioned by a merger. which could still fall. through.

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