Yahoo Finance Walmart to Roll Out New Prepaid Phone Service From Boost Founder
(Bloomberg) -- Walmart Inc. is expanding its offerings of prepaid phone plans with MobileX, a wireless service launched earlier this year by Boost cofounder Peter Adderton. Walmart will be MobileX’s first and exclusive retail partner, the companies said in an announcement Tuesday.
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MobileX, which uses Verizon Communications Inc.’s network through a wholesale agreement, will be available on Walmart’s website and in stores starting Tuesday, the companies said. It will offer unlimited pay-as-you go plans starting at $14.88 per month, and a lower-cost plan with customizable offerings starting at $4.08 a month. An artificial intelligence-powered guide that can anticipate a customer’s data needs can customize plans tailored to their usage, the company said in a statement.
“We’re super excited to be partnered with the largest prepaid wireless retailer in the US,” Adderton said in an interview. “Consumers have been losing options and brands like ours give consumers choice,” he said. In the past two years, large carriers have been buying prepaid service providers. Verizon acquired Tracfone in 2021, and T-Mobile US Inc.’s takeover of Mint Mobile is awaiting regulatory approval.
Walmart gives MobileX, which launched online in February, more visibility as a low-cost alternative to more expensive monthly plans from the big three wireless carriers. Still, cheap mobile services have had a difficult time dislodging people from more expensive plans. Many subscribers are locked into two and three-year phone payment plans and even those that could switch say the hassle is not worth the savings.
“We’re excited to offer our customers a new way of approaching their mobile phone plans with the innovation, customization and reliability provided by MobileX.” Mehrdad Akbar, vice president of merchandising for wireless at Walmart US said in an announcement.
The retail giant already has partnerships with several mobile service providers including Boost Mobile, which is now owned by Dish Network Corp., Verizon’s Straight Talk and Total Wireless brands, and AT&T Inc.’s Prepaid offer.
Walmart competitor Amazon.com Inc. recently started selling Boost Infinite. It already sells SIM cards for Boost Mobile, along with other prepaid plans.
“Boost is a potentially disruptive player at Amazon, and MobileX could be the same at Walmart,” said Recon Analytics’ Roger Entner, who was briefed on the announcement. “Adderton is a loud, colorful force in wireless and he’s worth watching.”
MobileX offers 5 gigabytes of high-speed data with its $14.88 per month plan and 30 gigabytes of data on its $24.88 offer. Additional data costs $2.10 per gigabyte.
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