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Ting Mobile Exec Shares Some Good News

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Ting Mobile's parent company, Tucows Inc., reported that the network has seen an increase in their sales last year. Compared to 2014, the number of accounts on Ting Mobile's network increased by 36 percent and the number of devices also increased by 37 percent. This led the Toronto-based mobile provider to report a Q4 profit of $3.1 million. The company attributes this growth to its MVNO Ting.

Seeing these results, the company hopes to expand their service by starting to offer Ting Internet, a fiber-based service that Tucows has previously launched in three mid-sized Atlantic coast cities.  Company CEO Elliott Noss shares that it is now possible for them to pursue their ambitions with Ting Internet and still be able to return capital to its shareholders. This is with thanks to their "strong cash flows from operations" and how their business model operates leverage. But most importantly, Noss shares that this realization has to do with the growth and the success obtained by Ting Mobile in the last few years. This was also the first time that Network Access was able to provide more gross margin in Q4 compared to Domain Services.

Apart from announcing their intention to proceed with Ting Internet, Noss shares that the carrier is decided to pursue previous customers of PTel Mobile. Earlier, PTel announced that they will be shutting down its business after providing service to customers in the last 15 years.

In the past, Ting used Sprint's network. But in the later part of 2014, the company added support for a GSM network which led them to utilize T-Mobile's network and be an MVNO. This move to T-Mobile widened Ting's reach and led them to a broader audience. In turn, it has also resulted to a high churn rate. Considering GSM is a global standard, it is much easier to find phones compared with CDMA or devices under Sprint's network. And with this, people can easily make the switch. But by offering GSM handsets, Ting is able to provide service to those who are coming into the country for a year or so but still be able to use their device back home. On the GSM side, this means a higher churn level for Ting but that's the best way they understand what is going on.


Source: Fierce Wireless

10 comments:

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  1. This doesn't really seem like news or an article that would be relevant to the readers of this site. This article doesn't inform the reader about anything new in the prepaid phone industry.

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    1. You mean other than the fact that Ting is profitable and beyond their sprint phone activation issue and gaining subs again?

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  2. Great option for super minimalist users (under 500/500/500). Still, if you hardly ever use your phone, Page Plus or Pure Talk may be a better deal?

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    1. The expense is offset for early adopters by the referral credits they handed out like candy. At the rate of my usage I won't be paying a cent for around 2 years.

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  3. I don't understand why everyone is so excited about Ting. Their prices are high, especially data.

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    1. My feelings exactly! They need to come down to the average $10/GB and 5-10¢/min rates. The $6/mo line access fee is the main problem though.

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  4. Per line charge plus taxes, insane!

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  5. But that's their business model. They have a niche they are filling, and it appears to be very successful. This is pertinent because it cements them as a long-term provider of pre-paid cell service. Should they expand their Internet service, it will be interesting to see how they change their data charges to accommodate ISP users on cell phones through them.

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  6. Ting doesn't need advice from any of us. They are growing fast and are really profitable!
    Every business dreams they can do that, especially MVNOs.
    The line charge makes perfect sense, IMO. Ting wants families and other multi-line accounts.
    Sharing the buckets means you can buy bigger, cheaper ones, and Ting can cover each fixed line cost to Sprint. I think it's a very smart idea, and one of the reasons for Ting's success.
    Consumer Cellular does a similar thing; it's $10 to add each line. They have 2M+ customers are quite profitable. It's not a dirty word - both companies provide great customer support and CC gives lots of money to charities.

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  7. Ting isn't the only MVNO making big profits. American Movil made $835M last quarter, even though they lost 58,000 subscribers (mostly dumbphones).
    Sprint on the other hand CUT its losses to $835M last quarter, from a loss of $2.38 billion a year earlier, after adding 501K net postpaid subs and setting a record in port-ins.

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