The US strategy pays dividends to Carlos Slim’s America Movil – Part 2

“But I’m not sure who might take notice except Leap and PCS,” he said, since most other carriers focus on bigger spenders.

MetroPCS reported a net loss of 186,000 customers in Q2. On Monday, Leap reported 289,000 net customer losses and said it would enhance its higher-end services.

TracFone, however, added 106,000 U.S. subscribers in the three months ended June 30. That’s in addition to the 1 million-plus subscribers it got from its May acquisition of Simple Mobile.

TracFone sells wireless plans through the Straight Talk and Net10 brands. Walter Piecyk, analyst at BTIG Research, says the Simple Mobile deal gives TracFone a new marketing weapon, “SIM-only” service.

Simple Mobile doesn’t sell phones. It sells prepaid SIM cards that are plugged into phones. Customers take out the SIM cards of AT&T or another service providers and insert Simple Mobile’s.

SIM-only service has caught on in Europe, but not in the U.S. Still, Piecyk in a report calls TracFone’s Simple Mobile deal “likely the first step in a broadening strategy.”

Both MetroPCS and Leap, meanwhile, are vulnerable to rising costs of smartphone retail subsidies, pressuring their profitability.

Short URL: https://www.newspakistan.pk/?p=30455

Posted by Usman Khalid on Aug 7 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.