Former Motricity CEO Ryan Wuerch is getting back in the wireless game with the upcoming launch of Solavei, a mobile virtual network operator with an unusual business model that will use its customers to tout its $49 per month unlimited voice, text and data plan to their friends and earn extra cash in the process.
The MVNO will operate on T-Mobile USA's GSM network. Consumers will spend a $49 start-up fee and then $49 monthly for service. They can use their existing unlocked GSM cell phones or obtain an unsubsidized device from Solavei, which will range in price tag from $160 to $500. The very first device will be the HTC 1, however the organization will even sell one from ZTE.
The service is currently in beta mode with about 2,000 users. Another 12,000 people have signed up to join when Solavei officially debuts at the end of September.
According to Solavei's Head of Products Jim Ryan, an additional former Motricity executive as well as the former vice chairman of information at AT&T Mobility (NYSE:T), the basic benefit proposition for the organization is that people are hooked on data, yet data keeps acquiring more expensive. "We saw this as an possibility. Exactly how should we do this better than the usual mobile company?" It's conclusion was to eliminate a number of the costs by not providing phone subsidies, decreasing customer support costs by providing the experience online, and acquiring rid of marketing and advertising costs by having the consumers sell the service to their friends. "We will establish a social marketing system that appreciates customers' involvement," Ryan said.
That participation from customers is what makes Solavei different from other low-cost MVNOs. Since the company relies on customers to sign up other customers, Ryan said Solavei will pay each customer $20 for each "trio" or three customers that they sign up. Customers will also get paid when the people they sign up then sign up others.
Ryan said that the company plans to target the 70 million or so prepaid subscribers currently in the U.S., but he also sees opportunity in other areas, such as people who are coming off postpaid contracts. In addition, he expects some people will even break their contract with their existing operator once they realize that they can potentially earn back the money they lose from breaking their contract by referring Solavei to their friends.
Solavei is well funded, having only sealed on its second round of funding; the organization is worth greater than $120 million. It also has a high-profile board of advisors which includes David Limp, v . p . of Amazon, John Miller, chief electronic digital officer at News Corp., and Sue Nokes, the former COO of T-Mobile USA.
The MVNO will operate on T-Mobile USA's GSM network. Consumers will spend a $49 start-up fee and then $49 monthly for service. They can use their existing unlocked GSM cell phones or obtain an unsubsidized device from Solavei, which will range in price tag from $160 to $500. The very first device will be the HTC 1, however the organization will even sell one from ZTE.
The service is currently in beta mode with about 2,000 users. Another 12,000 people have signed up to join when Solavei officially debuts at the end of September.
According to Solavei's Head of Products Jim Ryan, an additional former Motricity executive as well as the former vice chairman of information at AT&T Mobility (NYSE:T), the basic benefit proposition for the organization is that people are hooked on data, yet data keeps acquiring more expensive. "We saw this as an possibility. Exactly how should we do this better than the usual mobile company?" It's conclusion was to eliminate a number of the costs by not providing phone subsidies, decreasing customer support costs by providing the experience online, and acquiring rid of marketing and advertising costs by having the consumers sell the service to their friends. "We will establish a social marketing system that appreciates customers' involvement," Ryan said.
That participation from customers is what makes Solavei different from other low-cost MVNOs. Since the company relies on customers to sign up other customers, Ryan said Solavei will pay each customer $20 for each "trio" or three customers that they sign up. Customers will also get paid when the people they sign up then sign up others.
Ryan said that the company plans to target the 70 million or so prepaid subscribers currently in the U.S., but he also sees opportunity in other areas, such as people who are coming off postpaid contracts. In addition, he expects some people will even break their contract with their existing operator once they realize that they can potentially earn back the money they lose from breaking their contract by referring Solavei to their friends.
Solavei is well funded, having only sealed on its second round of funding; the organization is worth greater than $120 million. It also has a high-profile board of advisors which includes David Limp, v . p . of Amazon, John Miller, chief electronic digital officer at News Corp., and Sue Nokes, the former COO of T-Mobile USA.
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