T-Mobile USA MVNO Solavei will offer nano-SIM cards that are compatible with Apple’s (NASDAQ:AAPL) iPhone 5 and other high-end smartphones. The offering will pair those devices with Solavei’s unlimited prepaid service.
Solavei also said that Samsung Electronics’ Galaxy S III and Google’s (NASDAQ:GOOG) Nexus 4 will be compatible with the new service. The company said anyone using an iPhone 5 can buy a Solavei nano-SIM for $9 and pair it with Solavei’s service, which runs $49 per month. Solavei noted that its retail partner, GSM Nation, offers a range of unlocked pre-configured phones with six month no interest, no payment financing.
Solavei offers unlimited voice, text and data (the first 4 GB at high speed) without a contract on T-Mobile’s network for $49 per month. Because Solavei relies on customers to sign up other customers, Solavei pays each customer a $20 commission per month for each “trio” or three customers that they sign up.
Customers will also get paid when the people they sign up then sign up others. Thus, Solavei’s business model calls for the company to reduce customer care costs and customer acquisition costs by not paying for phone subsidies and instead paying customers to sell the service to their friends.
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