Tucows sells off Ting business, retreats into the back-end
Tucows has sold its Ting Mobile brand and customer based to DISH Network, repositioning itself as a provider of white-label back-end mobile services.
The company which is also the second-largest domain registrar, has found success in recent years as a mobile virtual network operator (MVNO) with Ting. Following the DISH deal, it will become a mobile services enabler, or MSE.
It’s basically a move away from providing customer-facing mobile services. Instead, it will provide the back-end technology platform, and DISH is its first customer.
CEO Elliot Noss said in a prerecorded statement:
We still get asked about the connective tissue between Domains and the mobile business, and it all boils down to our competence in billing, provisioning, and customer service for underserved technology markets.
He added that Tucows has been approached by other potential MSE partners over the years.
DISH gets to use the Ting brand for two years, with an option to acquire it at the end. Tucows will continue to offer Ting wired broadband services, but will change its name if DISH exercises the buyout option.
All Ting mobile customers have been handed over to DISH as of Saturday, but no money has changed hands up-front. Instead, Tucows expects to see increased margins over time from the cost savings and monthly fees DISH will pay it. It will also be paid for transitioning the business over to DISH.
Tucows expects the deal to be “neutral to slightly negative” to its 2020 earnings.
DISH is primarily a satellite television provider, but it entered the mobile market a month ago with the acquisition of Boost Mobile.
Recent Comments