Data Shows a Rise in Budget MVNO Wireless Carriers

The mobile industry is seeing a dramatic shift in consumer behavior. Mobile Virtual Network Operators (MVNOs) such as Mint Mobile and Cricket Wireless are seeing a rise in popularity over traditional, mainstream Mobile Network Operators (MNOs) like Verizon, T-Mobile and AT&T.  

The reason is simple: Consumers are looking to save money, and are realizing that they may be overpaying for their current service. 

And there’s not much, if any, sacrifice to make in order to find those savings. 

MVNOs rent network space from the big carriers. For example, US Mobile uses the T-Mobile, Verizon Wireless, and AT&T networks to provide cellular services to their customers.

Other MVNOs are owned by the major carriers. Mint Mobile is owned by T-Mobile, Cricket Wireless is wholly owned by AT&T, and Visible is Verizon’s pre-paid, budget service.  

So, you could receive the same or very similar coverage with significant savings on your monthly cell phone bill. And more and more consumers are starting to wise up to that fact. 

Goji Mobile data shows that 74% of phone plan shoppers gravitate to MVNOs over MNOs like Verizon and AT&T. More than 100 wireless carriers are represented in Goji’s marketplace.

“It's really a cost-savings motivation to go with MVNOs,” said Thad Hwang, Founder and CEO of Goji Mobile, a consumer marketplace making it easier to shop for phones and phone plans with clarity and confidence. “Everything is the same as MNOs, including coverage. Most MVNOs offer unlimited data plans, too, often for a much lower price compared to the mainstream carriers.”

Prepaid Plans vs. Postpaid Options

MVNOs operate as prepaid plans, meaning you have to pay upfront for service as opposed to MNOs that allow customers to pay for service at the end of the billing cycle, often under a contract term.

Approximately 65% of shoppers who come to Goji Mobile are currently on postpaid plans (MNOs) and looking to switch to a pre-paid plan (MVNOs).

Aside from long-term savings — with some MVNOs offering unlimited plans for as low as $20 per month when you prepay for a year of service — those selecting a prepaid plan have the peace of mind of having a service provider for a block of time without having to worry about a monthly bill.

Goji Mobile visitors who used the Plan Finder revealed that their average monthly wireless bill was $95.45 before finding a suitable, more affordable option through the Goji marketplace. 

Customers Opt for Unlimited Data…Even If They Don’t Need It

Back in 2024, the average smartphone owner used 21 gigabytes of data per month, according to a study by communication technology company Ericsson.

Today, unlimited data plans are still the most popular “tier” of data allotment offered by wireless carriers, but in actuality, only a fraction of people on those plans actually need unlimited data. 

Between 70% and 90% of data traffic happens over Wi-Fi. In a post-COVID world, less people are commuting to work on a daily basis. Many are working from home full-time and connected to home Wi-Fi most of the day. And more businesses and public spaces than ever before offer free Wi-Fi for guests when data users are on the go.

This creates an environment where people are less reliant on cellular data. 

But just because most people don’t need unlimited plans, they still gravitate towards that option — for one reason or another. 

Nearly 67% of Goji Mobile shoppers opt for unlimited data plans with their new provider of choice. 

How Much Data Do Goji Mobile Users Think They Need?

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Going with an unlimited prepaid plan through a MVNO can save phone plan shoppers money compared to unlimited postpaid plans with Verizon or AT&T. This could be a reason why shoppers still gravitate towards unlimited plans — they can find them at an affordable price and it provides peace of mind for that one month out of the year where they may rack up 20+ gigs of data in a single month. 

“There's a stat that says 70-90% of data traffic happens over Wi-Fi, not cellular, and I believe that consumers are not married to unlimited premium data plans as much as they used to be,” said Thad Hwang, CEO and Founder of Goji Mobile. “Still, two-thirds of people using our Plan Finder gravitate to unlimited data plans, which tells me that shoppers either feel they need an unlimited plan or want one for peace of mind to not have a cap on cellular data usage.”

What’s Stopping People from Switching to MVNOs?

Customers can save hundreds of dollars each year by switching to MVNOs. So why isn’t everyone making the switch? There’s a few reasons: 

1. Upfront Cost: Most MVNOs are prepaid, BYOD (bring your own device) plans. Instead of financing the latest iPhone and paying monthly into a two-year contract, MVNOs let you add service to your existing phone or buy a new phone outright. And the plan itself is usually prepaid in 3-, 6- or 12-month periods.  
2. Misinformed About Coverage: Some may also be unaware that these services use the same towers they are accessing with T-Mobile or Verizon. Everything is the same as MNOs, including coverage — assuming you pick an MVNO leasing bandwidth from the same MNO.
3. Unfamiliar MVNOs: Many consumers may know the name Mint Mobile because of Ryan Reynolds, but are largely unaware of other MVNOs like US Mobile and Tello. They also may be unaware that many of these services are backed or wholly owned by major carriers they know and trust. 
4. Lack of Perks: With major carriers like Verizon or AT&T, you can often get additional perks like a “free” Netflix subscription or a sports streaming service package. These perks are less common with MVNOs, but some like US Mobile are starting to offer “pick your own perk” promotions with their unlimited pre-paid plans.  
5. Brand Loyalty and Trust: Some just prefer the big names due to their longevity and brand authority. Some long-time customers of major carriers also can be “grandfathered” into better deals and family plans. 

Budget-savvy shoppers coming to Goji Mobile are discovering lesser-known MVNOs such as US Mobile.

“I’m very surprised by the volume of views and activations with US Mobile,” Thad Hwang, CEO and Founder of Goji Mobile said. “When we first launched, I assumed that Mint Mobile and Visible by Verizon would dominate the demand, primarily because of their marketing spend and vast footprint, but US Mobile and Tello have also garnered a fair share of views and activations. This signals to me that consumers are shopping for the best price to fit their budget.”