Wireless Reinvented: How Artificial Intelligence and Cloud-Native … – The Fast Mode
MobileX, an American MVNO, is quickly redefining the telco landscape with its AI-based cloud-native mobile application, empowering customers with unparalleled customization, real-time insights and affordable data plans. Andrea Yukta Lavannya, Senior Editor and Vertical Analyst at The Fast Mode spoke to Peter Adderton, Founder and CEO of MobileX on his predictions for the wireless market, the challenges that MVNOs face, as well as the company's unique selling points, including their use of AI to ensure network reliability.
Andrea: What are 2023 top trends for MVNOs?
Peter: I expect there to be continued challenges for distributors and independent retailers. Following the acquisitions of the larger MVNOs by the carriers, things have gotten pretty bad. Im hearing all the time about the economic pressures these channel partners are facing, many of which serve customers in communities that desperately need them to stay around.
I also anticipate T-Mobile and Mint Mobile being on their best behavior as they try to get their transaction approved. I dont believe that carrier acquisitions have helped the MVNO industry or have led to better values for consumers. Carriers will aim to drive more profit from the MVNOs they have acquired, and I expect to see a greater push from them to make prepaid customers select longer duration plans to get the best pricing, say 3-month and 12-month packages, as well as further entice them with handset offers as part of longer-dated offerings. This is not good for consumers who rely on flexible, value-priced, prepaid service for their connectivity. This longer duration push will most likely combine with attempts to increase prepaid prices as the carriers try to create more cash flow.
Lastly, Im excited to see MVNOs increasingly adopt eSIMs vs. physical SIMs. The larger carriers have tried to delay eSIM as they view it as a threat to their handset lock-in programs which drive customer retention. I believe its a good thing for the industry as well as consumers, especially as it eliminates one issue that hinders consumers from switching carriers.
Andrea: What is MobileX's unique value proposition?
Peter: MobileXs unique value proposition is its ability to leverage artificial intelligence to create dynamic realtime, hyper-personalized experiences with the customer in mind. Our platform predicts how much data customers need, delivering a dramatic reduction in cost while ensuring reliable speed and service.
MobileX was created to empower individuals to reclaim control of their own mobile access. We do so by allowing consumers to customize their own mobile phone service, and giving them access to insights about their own mobile data use to inform their decisions. MobileX utilizes real-time API to provide consumers with accurate insights to their data usage. Users are able to see how much data they are using at any time and customize their service down to the hundredth of a gigabyte.
Andrea: How does an app-based MVNO work?
Peter: Unlike traditional carriers with brick-and-mortar stores and other traditional distribution channels, MobileX primarily operates through its cloud-native platform. This allows us to serve customers in real time when they need it.
New users are onboarded through the app and can start receiving service immediately with an eSIM, or with a free SIM card. Plan maintenance and updates are also done through the app. The splash page shows a users data in real-time - how much remaining data they have left and their usage over time. Users can also add or subtract their preferred amount of data anytime, change their voice/text plan, switch to an Unlimited Plan and more.
Andrea: How does AI help in managing network capacity and ensuring the reliability of your service?
Peter: MobileX is the first cloud-native platform that leverages AI to serve wireless customers. Being 100% app-based and hosted in the cloud with unprecedented core network access to our carrier partner enables us easily and efficiently harness the power of AI. We have unfettered access to real-time customer data usage which powers our platform and machine learning algorithms. This gives us the ability to analyze customer usage down to the individual level and provide a hyper-personalized plan for every customer. As the platform learns their habits, it adjusts accordingly and provides recommendations on how they can optimize their plan and save money. We also give customers the ability to customize their own plan and choose how much data they want, down to a hundredth of a gigabyte. However, what we have seen since launch is that many of those customers end up going back to the AI-guided plan to create the best value and lowest cost plan for them.
Andrea: What challenges do you see in growing your market share in an industry that is dominated by traditional wireless offerings?
Peter: The biggest challenge in the industry for a new disruptor like MobileX is the general inertia of customers in developed markets like the US. We affectionately call it being rusted on. Customers have often been complacent with these legacy carriers for years, accepting and paying their exorbitant bills every month. They dont know how much data they use and rarely go out of their way to shop around. In the postpaid market in the US, churn is less than 1% but we expect to fiercely challenge that once customers learn about our platform and try it out. Whereas prepaid churn is much higher at 5-6% and we think that segment is definitely overdue for an awakening and our plans suit those seeking better value on a tier-one network.
Peter Adderton is founder and CEO of MobileX, the most customizable wireless service designed to save consumers money. He is the driving force behind some of the most successful companies in the space. Peter founded Boost Mobile in Australia in 2000, which continues to be one of the leading mobile brands. He also founded Amp'd Mobile, and co-founded Mandalay Digital, now Digital Turbine (Nasdaq: APPS) which he remains a significant shareholder of.
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Wireless Reinvented: How Artificial Intelligence and Cloud-Native ... - The Fast Mode
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