Developments in Mobile Business Strategies

In an exciting development for the wireless industry, Jason Bateman, Sean Hayes, and Will Arnett, the voices behind the popular podcast SmartLess, have launched their own Mobile Virtual Network Operator (MVNO), SmartLess Mobile. This move marks the latest example of businesses venturing into the realm of wireless services as an extension of their brand.

MVNOs, such as SmartLess Mobile, lease excess wireless capacity at wholesale prices from third-party mobile network operators like T-Mobile, Verizon, and AT&T. This business model has been gaining traction, with a growing number of celebrities and brands adopting it. In fact, The Trump Organization's new mobile service, Trump Mobile, relies on the network operator T-Mobile US.

SmartLess Mobile claims to be "direct-to-consumer, data-sane, and refreshingly BS-free," setting itself apart from traditional mobile network operators. Notably, Ryan Reynolds purchased an ownership stake in Mint Mobile in 2019, which was later sold to T-Mobile, demonstrating the appeal of this business model.

Unlike traditional mobile network operators, MVNOs don't have to construct or maintain cell towers, nor do they have to pay for radio frequency spectrum licenses. This allows them to offer competitive pricing to consumers. However, MVNOs can't promise the same high-speed data plans as the operators they lease from due to quality of service policies. Consumer surveys show that smaller mobile companies consistently beat out T-Mobile, Verizon, and AT&T for perceived value and customer support.

One of the earliest MVNOs was Virgin Mobile, founded by Richard Branson's Virgin Group in the United Kingdom in 1999. More recently, AC Milan became the first football club to create a mobile SIM card for its fans in 2023 with AC Milan Connect. Walmart has its own MVNO, Bait, in Mexico.

The founders of SmartLess Mobile believe that their podcast's large phone-listening audience makes an MVNO a logical next step for their business. This move is not just about generating additional revenue, but also about offering a service that aligns with their brand and resonates with their audience.

While MVNOs tend not to offer additional services such as access to streaming services or interest-free loans for new phones, they provide a simple, straightforward wireless service that appeals to many consumers. As the MVNO market continues to grow, it will be interesting to see how traditional mobile network operators respond and adapt.