A new cell phone service - Question about Entry

[Willing2Learn]

A lot of people are simply not happy with modern-day cell phone service. As you know most people are getting it from the widely known companies, Verizon, AT&T, Sprint, T-Mobile, etc. I've heard a lot of people complaining about the service, and not just the network service, but customer service as well. There are also some cell phone service substitutes (can't remember the one that was advertised on TV, something about a cell phone being a Cell), but upon a quick search, roughly between $6000-$10,000, you could start your own phone network.

I remember what MJ said in TMF , that if anyone can spend the money and start something, then it is probably best avoided. But yet, the top phone service companies are still dominating. Is there a possibility to turn this into a fastlane, even though if anyone wanted to, they could? It seems like that would be an entry violation, but it doesn't seem like there has been the next big thing that revolutionizes cell phone service.

I know, for one, that I am tired of paying $48 a month just to be able to talk to someone, and I feel like the industry is due for a change. Much like Sling TV is a step in the right direction to get away from these greedy cable TV providers, I feel that something new should happen to make cell phone service and customer service better.

What do you guys think? Is there any potential here for a fastlane opportunity?

 

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[TonyStark]

No

 

[Xavier X]

Having worked most of my 9 - 5 years in the telecommunication industry (including 2 of the 4 companies you mentioned), I'll say yes.
There is a potential for a fastlane project.

HOWEVER, it is NOTHING like you currently imagine it is. You haven't researched it nearly enough.

In order to make any disruptive change, which is the premise of your post, the capital involved is astronomical.
$6k - $10k won't even buy the coffee required.

Most cell companies outside the big 4 rely on them for service and towers. So, same service, different name.
To offer anything remotely revolutionary, you need to develop your own facilities and equipment.

And no, a web-based solution is not revolutionary, as you'll be offering just another VOIP service.

In essence, except you're independently wealthy or have access to massive capital, I'd say forget it!
..until you can financially pull it off, of course.

 

[Scot]

@Xavier X hit the nail on the head. I don’t think you’ve actually researched this before posting here.

I also worked in telecom, worked for Verizon Wireless for a few years.

Those companies you mentioned, there are a lot of them. Off the top of my head there’s Cricket, Consuner Cellular, Boost, Metro, Straight Talk. There are probably 5 more national players and maybe 20-50 regional players.

So how those companies work is you essentially lease bandwidth from one of the 4 established networks. You have Verizon, Sprint, T-Mobile, ATT. There are smaller regional ones around too like Alltell and US Cellular (at least in the southeast). Think of cell service like the power grid. The infrastructure required is massive. You don’t just pop in one day and say, “I’m going to build a new power plant and 10 substations and lay 15,000 miles of power lines” because you hate paying $150 for electric.

Essentially, these 3rd party cell providers lease unused bandwidth from one of the big 4. And that’s a problem in places where there’s not a lot of spare bandwidth. Because guess who gets priority on Verizon’s towers? Paying Verizon contract holders. So if you have Straight Talk and really want to watch that cute cat video on YouTube during lunch time, but every other Verizon customer is checking their Instagram at lunch. You get no bandwidth and get crap service.

Also, this $10,000 number you got, no clue where that came from. You’re leasing an entire country sized cell network. $10,000 might get you a 3 mo contract in Boise, Idaho.

In order to be a disriptor you’d need to either invent a new communications system that doesn’t rely on conventional towers, find a way to interact with any tower (CDMA or GSM) without paying for it, or build your own network for about $5bn.

But if you just try and do the 3rd party thing, you’re alresdy in a crowded market with big players with deep pockets (Walmart operates 2 of the larger 3rd party cell providers)

 

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