dslreports logo

story category
New T-Mobile MVNO Solavei: $49 No Contract Unlimited Data
Company Spending Nothing on Advertising, Users Promote Service
by Karl Bode 04:38PM Friday Sep 21 2012
After several years where the term MVNO was synonymous with total failure (it still may be), we've seen a flurry of new MVNOs in the last six months emerge that are intent on price disruption. A company by the name of Solavei is the latest, offering a new no-contract, $49 a month unlimited data service running over the T-Mobile network. After a $49 startup fee, users pay $49 a month and can get cash back for every subscriber they get to sign up for the service (users get $20 for every three customers they sign up). Phones aren't subsidized, and interestingly the company says it plans to save money by having absolutely no advertising budget:
This way, Jim Ryan, head of products at Solavei, says that the company is making up the money it pays out by not doing any advertising on its own. He says that the company started with just 12 representatives and has since grown to 25,000 with 93 percent choosing to refer the service to friends. "The amount of money spent on ads and distributions is big," Ryan says. "Were not spending any of that. It's good business to make your customers do it. It's very efficient."
While the company currently rides on T-Mobile's HSPA+ network, they say they'll offer LTE services as well once T-Mobile's LTE service is built. The service does give off the strong whiff of MLM and all that entails, and it enters a crowded market of upstarts all trying to do the same thing in various ways (Ting, Republic Wireless, etc.). Has anyone had any personal experience with this company yet?

93 comments .. click to read