Former Motricity CEO Ryan Wuerch is getting back in the wireless game with the upcoming launch of Solavei, a mobile virtual network operator with an unusual business model that will use its customers to tout its $49 per month unlimited voice, text and data plan to their friends and earn extra cash in the process.

The MVNO will operate on T-Mobile USA's GSM network. Customers will pay a $49 startup fee and then $49 per month for service. They can use their existing unlocked GSM smartphones or purchase an unsubsidized device from Solavei, which will range in price from $160 to $500. The first device is the HTC One, but the company will also sell a model from ZTE.

The service is currently in beta mode approximately two,000 users. Yet another 12,000 folks have signed up to join as soon as Solavei officially debuts in the end of September.

In accordance with Solavei's Head of Products Jim Ryan, yet another former Motricity executive and also the previous vp of information at AT&T Mobility (NYSE:T), the basic benefit proposition for the business is the fact that individuals are totally hooked on information, yet data keeps obtaining more costly. "We saw this being an possibility. How should we do this better than a mobile service provider?" The conclusion was to get rid of some of the costs by not providing mobile phone subsidies, reducing customer care costs by delivering the ability online, and acquiring rid of marketing and advertising costs by having the consumers sell the service to their friends. "We will establish a social marketing community that appreciates individuals engagement," Ryan said.

That participation from clients is the reason why Solavei not the same as other low-cost MVNOs. Since the company relies on customers to join up other clients, Ryan said Solavei will pay each client $20 for each and every "trio" or three customers that they enroll. Customers get paid if the people they register then register other people.

Ryan said that the company plans to concentrate on the 70 million or so pay as you go subscribers at present within the U.S., but he also recognizes opportunity in other areas, including individuals who are coming off postpaid contracts. Furthermore, he is expecting some folks will even split their contract with their current operator when they realize that they are able to potentially earn back the money they lose from splitting their contract by mentioning Solavei to their pals.

Solavei is well backed, having just sealed on its next round of financing; the business is valued at more than $120 million. Additionally, it comes with a high-profile board of advisors which includes David Limp, v . p . of Amazon, John Miller, primary digital officer at News Corp., and Sue Nokes, the previous COO of T-Mobile USA.

By money and buisness



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