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Report: MVNOs Getting Better Deal From Carriers

Tracfone has reportedly struck a "better deal" with carriers to provide a lower cost of service for them.

This report comes from Light Reading that shared a new MVNO agreement that Tracfone recently announced. The analysts believe that the new deal will allow cable-owned MVNOs (like Charter and Comcast) to improve their own deals.

"Tracfone also reported a surge EBITDA (earnings before interest, taxes, depreciation, and amortization) margins from 9% in 2Q19 to 15% in 2Q20, mostly driven by a new MVNO agreement that lowered their cost of service. We expect cable companies to show improving economics as they negotiate better MVNO terms as well."

In addition to Tracfone, there are reports that AT&T is planning to take some of Verizon's MVNO business. But there is no word on whether these re-negotiated prices will give consumers lower prices or produce higher commission for dealers.


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