We often hear about the so-called “big three” wireless carriers in the United States. AT&T, T-Mobile, and Verizon Wireless are the companies that fall under this label (and US Cellular is in a similar category, which we’ll get into later). But if there are three or four wireless carriers, why are there commercials for seemingly unlimited companies offering LTE and 5G service to your phone? That’s precisely what we’re going to explain today.
What is an MVNO?
In the literal sense, MVNO stands for Mobile Virtual Network Operator. Knowing that probably doesn’t help you understand what one is much better than the shortened version, though.
An MVNO is a mobile carrier that doesn’t operate its own network of towers, instead using the major carriers’ network (T-Mobile, Verizon, AT&T, and US Cellular, though very few MVNOs use US Cellular’s infrastructure). The MVNO pays the carrier for the data, minutes, and text messages, and you pay the MVNO.
A more straightforward way to think of an MVNO is as a reseller. Instead of you buying cellular service from one of the major carriers, the MVNO purchases access in bulk and then resells it to you, the consumer.
What makes an MVNO different from the big three carriers?
The most significant difference is that an MVNO doesn’t operate its own network. Rather than investing billions and billions into building infrastructure, MVNOs use existing networks.
Outside of that massive difference, MVNOs tend to be much smaller companies than the big carriers, often lacking storefronts and operating exclusively online. The ones with stores tend to be smaller and usually operated by franchisees instead of by the company itself. You’ll even see some wireless stores that sell multiple MVNOs at once. Stores like Walmart, CVS, and other big box retailers typically sell tons of different MVNOs in one place where you grab a prepaid card and SIM kit and go.
Another notable difference is that most MVNOs require you to prepay for service, whereas the major carriers have you pay after the service is delivered (prepaid vs. post-paid).
Why are MVNO’s cheaper?
Very rarely will you find an MVNO that costs more than a traditional phone plan from one of the main carriers. Here are the key reasons an MVNO is cheaper:
- Lower overhead due to not owning infrastructure
- Smaller employee headcounts
- Fewer or no retail locations
- Generally, they don’t offer discounted or free phones, so they make more profit on devices
- No perks like streaming services offered
- Data deprioritized at times
That last one is perhaps the biggest drawback of being on an MVNO. Even if you’re on an unlimited data plan and you have high-speed data left on your monthly allowance, you might find that your data speeds are slowed substantially in high-traffic areas. This is because the significant carriers prioritize their customers, treating users on MVNOs as second-tier customers by slowing down their data to the point of being almost useless. This won’t happen often; many customers will never experience data deprioritization. Still, it’s something to keep in mind before switching to one.
What are some popular MVNOs, and what network does each use?
There are a lot of MVNO’s in the United States to choose from. Some are bigger than others, with extensive marketing campaigns and huge companies backing them, while others are more boutique brands with almost no advertising that rely solely on word of mouth.
If you’re curious about some of the best MVNOs out there and which carriers they use, the table below lists a bunch of the most well-known MVNOs and what carrier towers they use. Check the coverage maps to find the one that works in your area before choosing one. Don’t just rely on price because the cheapest might not be on the best carrier in your location.
That’s not an exhaustive list of every MVNO available in the United States, as new ones are constantly popping up. Those are some of the most popular and well-known options, which of the major carrier’s towers they use, and links to sign up for service if one catches your eye.
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