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Why are virtual mobile networks cheaper than the actual network?

Im looking at changing from BT mobile to Three as its better coverage around my house.
So why are Smarty and ID mobile cheaper than Three.
Is there a catch to using these virtual network sims?
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Comments

  • jbrassy
    jbrassy Posts: 1,003 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    Smarty and ID are like the Ryanair or Easyjet of the mobile networks. In other words, they're no frills.

    To give some examples: Three has a number you can ring for customer service (333) whereas Smarty and ID only have online chat. You can use WiFi on the Underground with Three but you cannot with Smarty or ID.

    The other thing is price discrimination. ID and Smarty capture the more cost conscious consumer, whereas Three are more interested in customers who are less willing to switch and charge a premium for this.

    I'm sure there are others, but essentially some of the services are scaled back. This is not to say Smarty or ID are bad. I'm a current ID customer and I have used Smarty in the past and never had any issues (in fact I think they are really good value). 
  • jbrassy said:
    Smarty and ID are like the Ryanair or Easyjet of the mobile networks. In other words, they're no frills.

    To give some examples: Three has a number you can ring for customer service (333) whereas Smarty and ID only have online chat. You can use WiFi on the Underground with Three but you cannot with Smarty or ID.

    The other thing is price discrimination. ID and Smarty capture the more cost conscious consumer, whereas Three are more interested in customers who are less willing to switch and charge a premium for this.

    I'm sure there are others, but essentially some of the services are scaled back. This is not to say Smarty or ID are bad. I'm a current ID customer and I have used Smarty in the past and never had any issues (in fact I think they are really good value). 
    Thank you that does help. If they're Ryanair I'm not flying with them !!
    On the whole is the performance of the virtual network the same as Three or do Three hold some back would you know?
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Smarty is owned by Three as it cut down provider.

    Each MVNO has its own set of services and agreements with the networks they work with. It may be that they provide lower speeds, or don't support wifi calling or 5G calling etc.

    You need to understand what it is you need and choose the MVNO appropriate to those needs. For example if you can't find a provider that gives you good enough coverage inside your home, wifi calling would be important.
  • jbrassy
    jbrassy Posts: 1,003 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    jbrassy said:
    Smarty and ID are like the Ryanair or Easyjet of the mobile networks. In other words, they're no frills.

    To give some examples: Three has a number you can ring for customer service (333) whereas Smarty and ID only have online chat. You can use WiFi on the Underground with Three but you cannot with Smarty or ID.

    The other thing is price discrimination. ID and Smarty capture the more cost conscious consumer, whereas Three are more interested in customers who are less willing to switch and charge a premium for this.

    I'm sure there are others, but essentially some of the services are scaled back. This is not to say Smarty or ID are bad. I'm a current ID customer and I have used Smarty in the past and never had any issues (in fact I think they are really good value). 
    Thank you that does help. If they're Ryanair I'm not flying with them !!
    On the whole is the performance of the virtual network the same as Three or do Three hold some back would you know?
    Like I said, I am with ID now and I've been a Smarty customer in the past and never had issues. Customer service has been fine for me. You will always find people who have complaints with ID and Smarty as well as Three. 

    I'm terms of performance, I haven't had issues. As far as I can tell, there's no difference to being on Three.

    Someone else mentioned wifi calling. Both ID and Smarty support wifi and 5G calling. 
  • PHK
    PHK Posts: 2,189 Forumite
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    jbrassy said:
    jbrassy said:
    Smarty and ID are like the Ryanair or Easyjet of the mobile networks. In other words, they're no frills.

    To give some examples: Three has a number you can ring for customer service (333) whereas Smarty and ID only have online chat. You can use WiFi on the Underground with Three but you cannot with Smarty or ID.

    The other thing is price discrimination. ID and Smarty capture the more cost conscious consumer, whereas Three are more interested in customers who are less willing to switch and charge a premium for this.

    I'm sure there are others, but essentially some of the services are scaled back. This is not to say Smarty or ID are bad. I'm a current ID customer and I have used Smarty in the past and never had any issues (in fact I think they are really good value). 
    Thank you that does help. If they're Ryanair I'm not flying with them !!
    On the whole is the performance of the virtual network the same as Three or do Three hold some back would you know?
    Like I said, I am with ID now and I've been a Smarty customer in the past and never had issues. Customer service has been fine for me. You will always find people who have complaints with ID and Smarty as well as Three. 

    I'm terms of performance, I haven't had issues. As far as I can tell, there's no difference to being on Three.

    Someone else mentioned wifi calling. Both ID and Smarty support wifi and 5G calling. 
    Do they really support 5G calling (VoNR as it’s more properly known)? That would be amazing if they did. 
  • Neil49
    Neil49 Posts: 3,325 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You may find that MVNO's lack certain features that the big 4 include. 

    There has been a recent post regarding the ability to use short code sms messages. These are generally for charity donations, entering competitions and occasionally communicating with your bank. The post highlighted the fact that most MVNO's didn't offer this facility. 

    OK, it's only a minor issue but it exists all the same. I also understand that EE restricts the number of frequency bands to MVNO's that use their network (except for 1p Mobile). This may be more of an issue in rural areas. 
  • Neil49 said:
    You may find that MVNO's lack certain features that the big 4 include. 

    There has been a recent post regarding the ability to use short code sms messages. These are generally for charity donations, entering competitions and occasionally communicating with your bank. The post highlighted the fact that most MVNO's didn't offer this facility. 

    OK, it's only a minor issue but it exists all the same. I also understand that EE restricts the number of frequency bands to MVNO's that use their network (except for 1p Mobile). This may be more of an issue in rural areas. 
    Yes I read this later on yesterday. So I take it this will stop the wife trying to win a camper van or car on ITV?
  • molerat
    molerat Posts: 34,303 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The now defunct Plusnet mobile did not offer short codes, wifi calling or VoLTE using the EE network.
  • jbrassy
    jbrassy Posts: 1,003 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    As an ID pay monthly customer, I can confirm that you can send and receive short code messages. Not sure if the same can be said of ID PAYG. Smarty do not allow short code messages.
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