One of the largest MVNOs in the United States, the Consumer Cellular, has announced that its subscriber numbers reached 2.5 million and its revenue may reach more than $1 billion in the next fiscal year. The record subscriber numbers were reached after the company experienced a 15 percent growth in the previous fiscal year. Consumer Cellular's subscriber numbers make it the second-largest mobile virtual network operator (MVNO) in the United States, right behind America Movil's Tracfone. In fact, the continuous and consistent growth of Consumer Cellular is very impressive given that even Tracfone is dealing with declining subscriber numbers recently. If it manages to reach its target growth numbers this fiscal year, the MVNO will reach another milestone. The company hopes that it will earn more than $1 billion by next year, and it will aim to reach this goal by focusing on the strengths of the MVNO.
The success of Consumer Cellular is attributed to its strategy of providing services for a niche market and the strength of the MVNO's customer service operations. Consumer Cellular targeted its services towards the niche market of consumers who are 50 years of age and higher. In order to gain a substantial portion of its target demographic, the MVNO developed a marketing strategy that could reach a substantial number of its consumers and designed services that properly cater to its target consumers. In order to reach its target consumers, Consumer Cellular is working with the AARP to allow the MVNO to advertise its services to the association's members. This is a mutually beneficial relationship between the two entities, as Consumer Cellular shares with the AARP a portion of its revenue from the members of the non-profit organization. The company also made sure that its plans and some of its device offerings are simple enough for the elderly to use and understand. Its customer service operation is also viewed by Consumer Cellular as one of its biggest strength, with the MVNO ensuring that its customers feel that the company is devoted to resolving their issues with its services.
The success of the 22-year old operator is a bright spot in a rather competitive field of the MVNO industry. Many brands, including those supported by huge corporations like Disney, have folded due to the lack of subscribers. Consumer Cellular hopes that the strength of its services and the extensive knowledge of its niche market result in consistent growth for the MVNO in the long term.