Airlink Mobile powers new MVNO Simplexity posted by Joe on October 29th, 2008 - 7:26 am | MVNO
A new MVNO? Who woulda thought it, especially in these times? Apparently, though, it’s going to happen. It begins with one MVNO, Airlink Mobile, which is partnering with Simplexity to form Airlink Select. That part is simple. The next part is a bit confusing. They’ll provide postpaid services, which is odd for an MVNO in America. Most are built on a prepaid platform. Get this, though. Airlink Select will be “available to all Simplexity customers regardless of credit history.” How can you operate a postpaid service without treating it like credit?
From Andy Zeinfeld, CEO of Simplexity:
“Airlink Mobile has been in the MVNO market since 2002 and we are excited to be working with them. Through this partnership, we have created a competitive national wireless service offering that can be used by virtually all of our customers regardless of their credit history.
“In the past, we had not been able to offer a comparable postpaid alternative service to our customers who didn’t pass the carriers’ credit approval process. We had thousands of customers every day that wanted the benefits of wireless technology yet had been unable to acquire them at a reasonable price. Now, with Airlink Select, we will be able capitalize on this underserved market.”
It sounds like Simplexity will be taking considerable risk if they’re allowing people who can’t pass a credit check to open a postpaid account. Of course, some carriers have rigorous credit checks, so some people with decent credit might not pass. Still, to offer postpaid, which is essentially credit-based, to anyone regardless of credit history seems a strange business model. We’ll have to keep an eye on Simplexity and Airlink Select.