Could a “smaller carrier” break into the mainstream soon?
Xfinity Mobile looks like it could become a force to be reckoned with… someday. | Image by Comcast
But whether we’re talking about the two prepaid operators evaluated in these speed and reliability tests alongside the industry veterans or other smaller brands like Metro by T-Mobile, Cricket Wireless, Boost Mobile, Mint Mobile, or Visible, it’s crystal clear that many of you see this category as a solid alternative to “traditional” postpaid service from the “Big Three.”
How many? Well, almost a quarter of those who responded to our survey from last week are apparently already on a so-called “smaller” carrier, with another quarter exploring the possibility of such a move in the near future, and close to 13 percent of respondents looking set to ditch their current major wireless service provider in favor of a minor player.
It’s obviously not that simple
And the reason why the likes of Xfinity Mobile, Spectrum Mobile, or Metro by T-Mobile can’t capitalize on this attention they’re receiving from you at its true apparent potential is pretty simple… and found in the latter’s name.
Xfinity’s triumph in this report couldn’t have been possible without Verizon’s help. | Image by Opensignal
The landscape is also far too fragmented for a fourth big player to emerge from this group
Even assuming each of these small carriers only caters to a few hundred thousand people (although some are far more likely to have customer portfolios in the millions), that’s still way too many options that can frustrate users to a point where they’d rather stick with what they know.
Of course, competition is generally good, but I believe there is such a thing as too much competition, and this is one of the key reasons why the likes of Xfinity Mobile, Mint, and Visible are perhaps not growing at the pace one might expect based on their very aggressively priced plans and typically reliable service.
So is this a problem or not for Verizon, T-Mobile, and Sprint?
I think it is, and the core of the problem has a lot to do with brand recognition or reputation. Even though Xfinity Mobile uses Verizon‘s network, any report ranking the former ahead of the latter in speeds is guaranteed to damage Verizon‘s name. As long as Xfinity Mobile stays under 10 million subscribers, that may not sound like a very big issue for Big Red, but if the number starts to grow and Verizon‘s customer figures go down, the industry leader might begin to feel some pressure from stockholders.
For the time being, T-Mobile’s brand reputation is mostly intact. | Image by PhoneArena
It’s also important to remember that not all of these “smaller” carriers are built the same, and while Metro by T-Mobile is no threat to its parent company for fairly obvious reasons, Xfinity Mobile could always get a big marketing push from its own parent company, which just so happens to be a top two cable and broadband provider in the US… alongside Spectrum.
