A recognized consumer brand can be extended into wireless service more readily than most companies expect. There are two established routes, and they differ substantially in what the company controls, what it earns, and what it is required to license.

This is the fourth installment in a series introducing the attorneys of the Nelson Mullins Communications Practice Group. Earlier posts covered the FCC’s reach into non-telecom companies, accessibility rules for live chat and messaging, and Telephone Consumer Protection Act (TCPA) compliance for calling and texting.

Path One: Become a Mobile Virtual Network Operator (MVNO)

The company obtains its own corporate and communications licenses and complies with federal and state communications regulations. We can connect you with Mobile Network Operators or aggregators that provide the underlying connectivity and handle the licensing requirements.

From there the company advertises as it sees fit, sets the price, receives the revenues, and owns the customer relationship. The model can reach significant scale: in 2024 T-Mobile completed its acquisition of Ka’ena Corporation, the MVNO business built by Ryan Reynolds and his partners, in a transaction valued at up to approximately $1.35 billion.

Path Two: Distribute Another MVNO’s Service Under Your Brand

The company enters a distribution relationship with a white label MVNO and offers that MVNO’s wireless service to end users under its own brand. No communications licenses are required. The MVNO sets the price, collects the revenues, and owns the customer relationship, and the company is compensated for its advertising and distribution services through the distribution or affiliate agreement.

Choosing Between Them

The decision turns on how much of the customer relationship the company wants to own and how much regulatory obligation it is prepared to take on. Path one offers control and revenue at the cost of licensing and ongoing compliance. Path two trades both away for speed and simplicity.

Contact Josh Guyan to determine which structure fits your brand, obtain any necessary licensing, and negotiate the agreements required to bring the service to market.