Andrew Yang, the former U.S. presidential candidate and entrepreneur, has ventured into the mobile virtual network operator (MVNO) space with Noble Mobile, a carrier that refunds users for unused data.
Yang’s Noble Mobile Rewards Users For Lower Data Use
Yang’s Noble Mobile, which operates on T-Mobile’s (NASDAQ:TMUS) network, offers a $50 monthly plan with unlimited talk, text, and 5G data. If users consume less than 20GB of data, they receive a refund in the form of “Noble Cash,” which can be redeemed for rewards or cashed out at around $1 per unused GB below the 20GB threshold, TechCrunch reported.
Yang, who admits to being a “doomscroller,” said that tying financial incentives to phone usage habits would encourage him to use his phone less. The company raised a $10.3 million seed round led by Corazon Capital, with contributions from Scott Galloway and other investors.
Yang’s actions reflect his belief that people should reduce their phone usage. He has recently organized “no-phone parties” in LA and NYC, possibly to gauge interest in Noble Mobile.
Yang's Noble Mobile Follows Mark Cuban's Low-Cost Model
Yang’s move into the MVNO market is inspired by Mark Cuban’s business model. Cuban’s Cost Plus Drug Company has been rapidly expanding, offering over 6,000 medicines and providing significant savings to consumers and healthcare providers alike. Cuban’s Cost Plus Marketplace aims to lower prescription drug costs by eliminating the middleman and keeping its pricing transparent.
Yang’s Noble Mobile, similar to Cuban’s Cost Plus Drug Company, provides an affordable alternative to traditional services. MVNOs such as Noble Mobile reduce costs by purchasing wholesale access to wireless networks instead of building and maintaining their own infrastructure.
"I see what Mark is doing there," said Yang. "Maybe he's not profiteering to the same degree that some other companies are, but you can see he's got a fine business there,” he added.
Trump Mobile Sparks Debate Amid Budget MVNO Trend
Yang’s venture into the MVNO market comes at a time when the mobile industry is seeing a shift towards more affordable and flexible options. President Donald Trump also recently announced a budget-friendly $47 mobile plan to address the issue of costly mobile phone plans and smartphones being produced in other countries.
However, plans to launch Trump Mobile with a Trump-branded phone, expected in 2025, are raising concerns among Democratic lawmakers about regulatory oversight and potential conflicts of interest.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
