TextNow X BNN Bloomberg
On January 28, 2020, TextNow CEO Derek Ting appeared on BNN Bloomberg to announce TextNow’s new nationwide agreement with Sprint to provide free unlimited ad-supported coverage.
Although TextNow has been able to strike a deal with Sprint in the U.S., at home in Canada there are still barriers to overcome as incumbent telecom providers continue to push back against allowing greater network access to Mobile Virtual Network Operators (MVNOs).
What is the benefit of this Sprint deal?
Derek explains that with TextNow, customers are able to get a free 10-digit phone number that can be used for calling and texting either over WiFi or when connected to the Nationwide Sprint network. The wholesale relationship between TextNow and Sprint allows TextNow to provide service to our customers, while at the same time Sprint is able to monetize their network and generate incremental revenue.
How is the climate of the Canadian telecom industry creating barriers for MVNO services like TextNow to enter their own local markets?
Well first off, TextNow’s free application is already available in Canada to be used over WiFi. Whether using the service as a primary number or as an affordable secondary phone option, even our WiFi-supported service has many use cases in the Canadian market.That being said, we would very much like to partner with an operator in Canada, especially since we have now been able to show that this business model does work, and is mutually beneficial for both parties involved. With more government talks about cutting cell phone bills for Canadians, Derek is optimistic that TextNow will be able to help improve cell phone affordability in Canada.