Supermarket MVNO catching on

We’ve talked at length here on Prepaid Reviews about how MVNOs in America just aren’t working. We’ve seen services like ESPN Mobile, Disney Mobile, Amp’d Mobile, and XE Mobile tank in recent memory. In addition, we’re seeing slowing growth from Virgin Mobile, and an inability to turn a profit from Helio. Yet there is a company making a splash while flying under the radar.

Grocery store Kroger has it’s own wireless brand, i-Wireless. And unlike its defunct and troubled counterparts, this MVNO is making waves, albeit quietly, in the wireless industry. So how is this low-key operation thriving in the current wireless environment?

But i-Wireless says it is thriving thanks to its focus on the basics and relationship with Kroger. “So much of the North American MVNO market was brand-led, which … really competed directly with carriers in a game where they had much better scale,” says i-Wireless Chief Executive Paul McAleese. I-Wireless, he says, competes on distribution, not brand.

Though I’d definitely say that they do use brand to their advantage. McAleese even agrees with that:

“There’s a huge amount of loyalty and trust there,” notes McAleese. “People are predisposed to trust what you sell them in a grocery store.”

So there is branding involved, though it’s not branding specifically for wireless services. Instead, they use the brand they’ve already built up to distribute the i-Wireless service, which is available at roughly 2,200 Kroger stores nationwide, which is close to the number of AT&T company-owned stores and kiosks in the U.S. Kroger plans to add another 300 outlets by October.

Kroger is becoming a success because they keep it simple. There are no data plans. Just simple, straightforward calling plans that range from 10 to 25 cents a minute. That seems like the norm for many wireless resellers. They’re able to keep costs low by keeping just 16 people on staff, who run the network and answer customer service calls — in under eight seconds, according to McAleese.

Judging by the success of MVNOs like Tracfone and Page Plus, Kroger could be onto something here. Boost and Virgin have the corner on the “hip” youth market. The real successes, though, are going to target regular folks who just want affordable and reliable cell service, without any frills.

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2 Responses

1. Chris Says
   

   I have i-Wireless and it has been the best service! My brother has it and my dad, mom, other brother, and step-dad probably will soon. I did have Verizon prepaid and i-Wireless is better, they have Sprint’s coverage.

   Their rate plans are great, some of the best ones are for $20 a month you get unlimited text, for $25 a month you get unlimited text,200 MB of web, and 200 minutes. For $40 a month you get 200 minutes, unlimited text, and free nights and weekends, for $55 a month you get unlimited talk, text, and 200 MB of web.

   I have the Sanyo 2700 Juno, my brother has the Samsung M330, and my dad might be getting their best phone, the Samsung Seek, my other brother will be getting the Sanyo Katana LX Blue, my mom might be getting the Sanyo Katana LX pink, and my step dad might be getting their Samsung M240. The Samsung Seek with i-Wireless is $99.99, but that’s their most expensive phone, it is worth it. Their best phones are the Sanyo 2700 Juno, the LG Rumor 2, and the Samsung Seek.

   Their free minutes program is great.With each new phone, using your Kroger Plus card, you get 400 free minutes with each phone. The other part of the free minutes is every time you spend $100 dollars w/ your Kroger card, you get 20 free minutes, and the gas rewards still works too? You get both!! i-Wireless is great. People should try this prepaid MVNO of Sprint, it gives SATISFACTION!! You should try this awesome service.

   
   Posted on November 25th, 2010 at 8:05 am
2. Burt Says
   

   We had I-wireless from King Soopers for about three years and are now letting them expire.
   The reason? I-wireless is NOT an mnvo!
   They use the Sprint network.
   We travel a lot in Wyoming on I-80 going to Utah and all points West. With I-wireless we have NO reception at all in Wyoming since Sprint has no cell towers in Wyoming and does not allow roaming!!
   We have switched to Tracfone (who is an mnvo) and have reception in Wyoming and anywhere else we go where cell reception is available
   Love the Tracfones (LG 420g)!!!!!!
   Burt

   
   Posted on August 2nd, 2011 at 10:08 am

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