T-mobile Has Acquired Mint Mobile

Mint Mobile has been one of the most successful mobile virtual network operator's (MVNO) and it looks like its success was noticed by T-mobile, which decided to by Mint Mobile for about $1.35 billion. I found this move to be surprising. While MVNOs can be viewed as a competition, they also are clients or partners in business. Especially, when Mint Mobile already uses T-mobile's infrastructure and network for its operations, why would there be a need to acquire Mint Mobile. Even if they are successful. Mint Mobile's success doesn't necessarily take away from T-mobile's network and its growth. I would argue it could the opposite. Successful operations of such MVNOs can indirectly grow the big service providers network and influence.

I have used different cellphone service providers in the past both among big four networks and MVNOs. Big four (or three) try to lock their customers into long term contracts with various tactics like offering discounts on devices, etc. MVNOs on the other had try to offer cheaper plans and no contract obligations, all while offering the same network quality. Usually, MVNO customer service is poor, probably due smaller operating budget and different priorities. However, it is rare to see big four acquiring MVNOs, because they do serve its purpose and may not add any more value to already existing network of bigger providers.

Many MVNOs start out good, with attractive offers and discount plans. Once they reach certain threshold of user-base, they tend become less reliable, increase their fees, customer service gets even worse. Since most MVNO customers are not really looking for long term commitment, they always have other option, different MVNOs. There indeed is a competition between MVNOs themselves, but they are not necessarily competing against big three: AT&T, Verizon, T-mobile/Sprint.

I have been using both T-mobile and Mint Mobile for a while now. When it comes to signal reception, internet speed, etc they are not the greatest. There are definitely times when the services drop below standard quality levels. We can't blame Mint Mobile for that, because they use T-mobile's infrastructure and towers. There isn't much of an improvement Mint Mobile can come up with on their own. However, what Mint Mobile was able to do is to build a successful product and a brand. They offer lower service plans. Depending on the service needs, users can easily choose which plan works for them and also change the plan as needed without long term contractual obligations.

When it comes to plan fees, the genius of Mint Mobile was in offering even lower priced plans for those who are willing to pay for longer time in advance. For example if a plan costs $35 a month, this can be lowered to $30 a month if paid in full for six month, or even lower if paid for the entire year. I don't remember the exact numbers. Feel free to check on their website. For those who would want to get more discounts on the cell phone service, these deals would be no brainer, if they are already satisfied with the service. By doing this Mint Mobile has been able to retain its customers for a longer terms.

In my opinion, their best feature is/was their mobile app, that makes it super easy to manage the service. Not only it allows speedy initial setup of the service, or transfer of phone number, but also monitoring the the usage when needed. It also offers eSim option, and I think it is probably a better option. There is no longer need for physical sim cards, although some may prefer physical sim cards instead. Most of the latest smartphones offer dual Sim cards and eSim use. There are still people who use two phones, one for work/business and another for personal use. They still carry two separate ones. These days there is no need for that. We can have multiple lines in one device. Mint Mobile was able to utilize this option well.

What separated Min Mobile from its competition the most, in my view, was what it seemed to be an honesty. Many companies utilize deception tactics with hidden fees, misleading ads, and lies in commercials. But Mint Mobile seemed to be genuine about their business model and it was displayed in their commercials. Ryan Reynolds is one of the biggest investors in the company. He appears in most of Mint Mobile commercials, if not all. One of the lines they have used has been - We care so much about the low prices for our customers that we don't want to spend money on commercials and create them in house. That's why Ryan Reynolds himself appears in most or all of their commercials. Now that they have sold the company to T-mobile, it is seems like they haven't been different from other companies at all, and they too have used deception. It is kinda disappointing.

It is also understandable that company would choose to be acquired by a bigger company. Sometimes this is the entire goal of creating and building a company, to sell. It is not clear if this was the goal for Mint Mobile from the beginning, or if Ryan Reynolds was lying in his commercials or simply wasn't in control of business decision making. As happens with many acquired companies, this might be the end of something good. When bigger companies acquire smaller ones, it is sometimes to remove the competition, sometimes it is about buying the technology or talents. In this case, the only thing T-mobile will be getting is a brand and Mint Mobile users. That is if users decide to stay.

Now that Mint Mobile will not have its original drive to become a the most successful MVNO, I wonder if this will be the beginning of the end of Mint Mobile. I am not planning to move away from Mint Mobile just yet. Future will show if the services continue to be useful or if they will be integrated into T-mobile plans. There will always be another MVNO that will want to become another success story. Let me know your thoughts in the comments.

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