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Tello Mobile launched in the USA in 2015. Ever since its inception, the MVNO has always offered competitively priced plans on the Sprint network. Tello is also no stranger to offering new customers great promotional signup offers. Those two factors are probably a big reason why the company was able to recently announce in a blog post dated February 1, 2019 that it had over 50,000 subscribers use their service month over month. It's rare for an MVNO to announce its subscriber count, but this is something to behold.
Tello Mobile's Valuation?
While Tello does not disclose what it's worth, we may be able to get some idea based on what MVNOs have sold for in the past in association with their subscriber count. For instance, TPO Mobile's subscriber base was recently sold to Ting at an estimated price of $75 per customer. Using that multiple, we may have a baseline price for Tello at $3.75 million. Of course, TPO Mobile was in distress at the time of its sale which means it may have had to sell its customer base at less than face value. So perhaps Tello Mobile is worth even more.
Another MVNO that recently got sold with the financial details made public was GreatCall Inc. GreatCall INC was sold to Best Buy at a deal valued at $800 million. It had over 900,000 subscribers at the time of sale. That means Best Buy paid an astounding $880+ per GreatCall subscriber. Tello Mobile's subscriber base is definitely not worth that. I surmise margin rates are much higher with GreatCall compared to Tello. GreatCall plans were always priced at a premium. GreatCall is also more than a cell phone plan provider. The MVNO provides the elderly with an emergency response system and it sells wearable tech.
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Best Buy made the purchase to help it expand its Assured Living program which is aimed at using technology to help children keep an eye on their aging parents. If Tello received a valuation at that level it would be worth $44 million. But that again is an unrealistic figure. Most likely its true value falls in the range of $3.75 to $7.5 million. But this is just my best guess. And Tello is owned by a larger company called KeepCalling. My estimated valuation is only for Tello Mobile and does not include its parent company's worth.
Tello Giving Current Subscribers Chance To Win $50 Account Credit
One thing I read all the time from customers is that they are unhappy seeing their provider of choice offer new customers great promotional rates, while they never get anything for remaining a loyal subscriber. This is something that Tello recognizes and is probably another reason why it has been running a successful business. Last year Tello offered all of its loyal subscribers 50% off one month of service. Tello's current offer is nothing at all like that as it will only impact a couple of subscribers. But it's still something. Two lucky Tello subscribers that like Tello's Facebook page and leave a comment why they like the brand will be eligible to win a $50 account credit. The winners will randomly be selected on February 14th.