America Movil in the Process of Buying Simple Mobile

[Conan Edogawa]

http://www.reuters.com/article/2012/...8GA37Q20120510

Despite Simple is not being a favorite here, you have to wonder what is going to happen to the service with a new owner.

[pattyrn]

And to think that MVNO started in someone's garage a couple of years ago---- guess we will need another tmo MVNO ----

[503ducati]

América Móvil's TracFone acquires T-Mobile MVNO Simple Mobile

http://www.fiercewireless.com/ctiali...ile/2012-05-10


NEW ORLEANS--América Móvil's U.S. MVNO, TracFone, announced it purchased T-Mobile USA MVNO Simple Mobile. Terms of the deal were not disclosed.
TracFone is the nation's largest MVNO with around 20.1 million subscribers. TracFone said Simple Mobile counts 1 million subscribers.

During a meeting yesterday at the CTIA Wireless trade show here (before the TracFone deal was announced), Simple Mobile's Senior Vice President of Marketing Tim Garrett said the MVNO has recorded 2.5 million device activations.

Simple Mobile operates a "SIM-only" business; the MVNO doesn't sell phones, but offers SIM cards with service to those who bring their own phones to the carrier. Garrett said around 60 percent of the MVNO's subscribers bring their own phone to the service; the rest purchase phones through the distributors that Simple Mobile is allied with. Garrett said the T-Mobile myTouch phone is one of Simple Mobile's most popular devices.

Interestingly, TracFone recently launched its own SIM-only service.

Simple Mobile offers unlimited data services, along with unlimited talk and text, for $60 per month. Garrett explained that the carrier's service isn't completely unlimited--he said the MVNO monitors customers' data usage and will take action against those it considers excessive data users, but does so on a case-by-case basis.

Garrett said Simple Mobile was in the process of expanding its marketing efforts from large markets like Miami and Los Angeles to smaller markets like Detroit, Washington D.C. and elsewhere. It's unclear how TracFone will integrate the company; TracFone executives typically don't respond to questions from the media. The company was not immediately available to comment on the news.

"The acquisition will add important new distribution channels for América Móvil and is likely the first step in a broadening strategy," wrote BTIG analyst Walter Piecyk, who estimated that T-Mobile owned 30 percent of Simple Mobile but will not move to block the transaction.

Piecyk wrote that part of the reason that TracFone was attracted to Simple Mobile was due to support for the iPhone. Before the acquisition was announced, Simple Mobile's Garrett said that the company was preparing for a change in T-Mobile's network later this year that would allow Simple Mobile to deliver HSPA services to unlocked iPhones. T-Mobile plans to provide HSPA services over its 1900 MHz spectrum later this year, a move that will allow users with unlocked iPhones to move to T-Mobile's network and make use of its HSPA speeds. Currently, iPhone users can only make use of T-Mobile's EDGE speeds.

TracFone operates a number of MVNO brands across the networks of top U.S. wireless carriers like Sprint Nextel (NYSE:S). The company's prepaid MVNO brands include Straight Talk, Net10 and others. During its first quarter, América Móvil said TracFone reported total revenue of $1.1 billion for the quarter, up 24.4 percent from the year-ago period. The company said service revenues climbed by a similar margin to $970 million. The unit's EBITDA more than doubled from the year-ago period to $140 million. TracFone's average revenue per user in the first quarter climbed to $16, from $14 in the first quarter of 2011.

[bamx2]

I would like to see someone like them (anyone but the big 3) purchase and combine MetroPCS and Cricket .

[lisaco1]

http://www.reuters.com/article/2012/...8GA37Q20120510

Despite Simple is not being a favorite here, you have to wonder what is going to happen to the service with a new owner.

What's going to happen ?? GROW, GROW, GROW

They're going to grow the business outside walmart...

They're Are buying the Brand, distribution channels, and partnering with Tmobile... GSM revolution

[zapjb]

I would like to see someone like them (anyone but the big 3) purchase and combine MetroPCS and Cricket .

I agree they should merge. But I'd rather not have America Movil buy them either. America Movil has exactly zero accountability in my book.

[vmobi]

Wirelessly posted (HTC Wildfire S: Opera/9.80 (J2ME/MIDP; Opera Mini/6.5.26955/27.1662; U; en) Presto/2.8.119 Version/11.10)

America Movil should go ahead and acquire T-Mobile, Carlos (Slim) can buy them from z-Germans for very little money. No name change would be required since the T in T-Mobile would stand for Trac. ...

[fonezfonz]

I hope Simple mobile gets better, not worse from this.

[Jairzinho]

I wish Carlos had bought TuYo Mobile instead (or too) and saved it and the improved it with new plans and data. Light voice and data users need choices also under T-Mobile network.

[fonezfonz]

I wish Tuyo got saved too but Carlos is going for a growing market and Tuyo was shrinking with no user base. They hadn't done new activations in over a year. Simple mobile is a million strong so they were worth the money. If Carlos wanted too, he could start a new mvno cheaper then buying one , I'm sure he weighs economics above all else.

[pattyrn]

I would like to see the look on people's faces when they get cut off for using too much data.

[zapjb]

I would like to see the look on people's faces when they get cut off for using too much data.

LMAO Thanks.