An attempt by Voyager Mobile to disrupt the prepaid apple cart took a step backwards this morning as the company’s planned launch of its mobile virtual network operator service was bedeviled by what its website is calling a “malicious network attack” that has forced the company to postpone its launch originally scheduled for today.
The company states that it has postponed its launch until a future date, adding: “Our goal of low cost wireless service for all will not be undermined and we strive to continue the voyage for a better wireless world.”
Voyager said its plans are to unveil a nationwide MVNO service running across Sprint Nextel’s CDMA-based 3G network and Clearwire’s more limited WiMAX network using smartphones running both Android and Windows Phone operating systems. More impactful for the mobile space are planned rate plans that will begin at $19 per month for unlimited voice and messaging, with the addition of unlimited data ratcheting the price up to $39 per month.
In addition to the low prices, Voyager also said it will offer a rewards program that will award “points” for usage that can be redeemed for airline miles, gift cards, phone upgrades or used to pay for monthly service.
Analysts have noted that the aggressive price structure for the offering could pressure current no-contract, unlimited offerings from carriers like Leap Wireless, MetroPCS and Tracfone’s Straight Talk offering, as well as Sprint Nextel’s own Virgin Mobile and Boost Mobile services. Most of those operators offer some form of unlimited everything plans for between $40 and $60 per month, though with a limited selection of handsets. Voyager is touting a much broader selection, though details are still waiting for an actual launch.
Earlier this month, Prepayd Wireless began offering service across Sprint Nextel and Clearwire’s networks with plans beginning at $35 per month for unlimited voice calls, text messaging and 411 information services, up to $60 per month that throws in unlimited 3G and WiMAX data services as well as a GPS locator service. The 3G service runs across Sprint Nextel’s CDMA-based network. Devices that do not include WiMAX capabilities cap out at a $50 per month plan.
The move also shows the continued push by both Sprint Nextel and Clearwire in signing up MVNOs to their networks. This is especially apparent for Clearwire as these new deals are limited to its WiMAX-based network that the carrier has said it does not plan to expand beyond current coverage of approximately 120 million potential customers. Recent deals include the one with Prepayd, as well as with FreedomPop and NetZero.
Clearwire is looking to divert its resources to the rollout of its TD-LTE network that it plans to begin turning on next year. Clearwire has signed up Leap Wireless as a wholesale partner for that network, which is also core to Sprint Nextel’s LTE plans.
Bottom Line: With recent first quarter results showing strong prepaid growth across most operators, the space is drawing increased interest from both traditional and new players. Aggressive pricing models are sure to supply short-term pain for many players, though the ability to support those models will be the biggest challenge.
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