US Mobile is one of hundreds of smaller MVNOs working to cut out a niche in the market for wireless services, but according to CEO Ahmed Khattak the company is growing and is now cash flow positive.
“There’s a lot to be excited about,” said Khattak.
The MVNO counts around 50,000 unique subscribers, a figure Khattak said has been growing every month. US Mobile reported roughly 20,000 customers in late 2016. While US Mobile’s 50,000 figure appears to be below the company’s stated goal last year, Khattak said the company is nonetheless succeeding in its efforts to grow share and revenues.
Khattak said that US Mobile has doubled its revenues every year since it launched in 2015. He said the company recorded $300,000 in reocurring, annualized revenues its first year of operation, a figure that grew to $2.6 million in 2016. Khattak said US Mobile is on track to reach $10-15 million in revenues this year.
US Mobile’s offering launched on T-Mobile’s network and added Verizon’s network last year. Last month, the company refreshed its rate plans to offer unlimited talk and text for $10 per month alongside unlimited data at “Ludicrous Speed” for $55 per month. The company also launched new “Custom Plans” with prices including 1 GB for $10 and a referral program with $25 rewards for each new sign up.
Importantly, Khattak said US Mobile—which counts a core base of roughly a dozen employees—developed its own technology stack for its MVNO service, which means the company doesn’t have to purchase MVNO enabler services from a third party. He said that technology stack has allowed US Mobile to offer customizable plans across two different wireless operator networks.
Further, Khattak said that US Mobile is planning to expand into the connected devices market as early as next year, supplying services for objects ranging from drones to watches. “Our platform was built for connected devices,” Khattak said.
Khattak said that US Mobile’s services are only available online, and that the company conducts much of its customer care services through its digital operation. He said the MVNO’s churn rate has hovered around 4%—a figure much higher than the postpaid churn rates of most nationwide wireless operators but one that’s largely in line with the churn rates of most prepaid offerings.
Next year, Khattak said, US Mobile will likely expand its distribution into retail outlets and may add postpaid offerings to its lineup.
Khattak also founded GSM Nation, which launched in 2010 to sell unlocked GSM phones in the United States and elsewhere. He moved into the MVNO business with the launch of US Mobile in early 2015.