- How much of the market do the three major carriers control?
- In 2024, Verizon, AT&T, and T-Mobile control over 88% of the U.S. wireless market. They own most of the cellular towers and networks, making them dominant players in phone and internet services. This leaves only a small portion of the market for smaller operators.
- What is an MVNO?
- MVNOs (Mobile Virtual Network Operators) are smaller companies that rent network space from the major carriers to offer services, often at lower prices. However, many MVNOs eventually get acquired by these major carriers, reducing competition. For example, AT&T owns Cricket Wireless, T-Mobile owns Metro and Mint Mobile, and Verizon owns TracFone, including brands like Straight Talk. Although it seems like there are numerous choices, nearly all wireless options are ultimately controlled by Verizon, AT&T, or T-Mobile, limiting genuine competition.
- Do the three major carriers really control nearly 100% of the wireless market?
- Yes, when factoring in their own market share and their ownership or control over MVNOs, AT&T, Verizon, and T-Mobile exert near-total control over the U.S. wireless market. For context, when AT&T was broken up in 1984, it only controlled 85% of the local market and 90% of the long-distance market—communication’s importance has grown substantially since then.
- What is offloading?
- Offloading is the transfer of data traffic from a cellular network to a Wi-Fi or other alternative network, helping carriers manage network capacity.
- How much capacity do carriers offload to the internet?
- As of 2024, approximately 64% of mobile data in the U.S. is offloaded to Wi-Fi networks. While carriers charge customers for data, much of it actually runs through their own Wi-Fi, for which they bear the cost. This raises the question: why are consumers paying carriers for data that primarily relies on their own networks?
- What is a class action lawsuit?
- A class action lawsuit allows a group of individuals with similar claims to jointly file a single case against a common defendant. This ensures that all affected individuals are collectively represented.
- Who are the defendants?
- The defendants in this case are the major U.S. telecom companies: AT&T, Verizon, T-Mobile, and T-Mobile's parent company Deutsche Telekom. Together, these carriers control over 90% of the U.S. cellular market.
- Why is VoIP-Pal pursuing a class action?
- VoIP-Pal has filed this class action lawsuit on behalf of over 380 million subscribers, aiming to end the anti-competitive tying practices of the major U.S. telecom companies. The goal is to give consumers the option to access standalone Wi-Fi voice and data services on their mobile devices, which could lower costs, enhance coverage, improve call quality, and promote market innovation.
- What does the class action allege?
- The class action alleges that the major telecom companies tie services in ways that may compel consumers to pay for additional features, resulting in inflated costs. By tying minutes with other ‘free’ services, they maintain control over cellular services while limiting access to more affordable Wi-Fi-based options.
- How does the class action benefit consumers?
- If successful, the class action will require major telecom companies to unbundle their services, allowing consumers direct access to Wi-Fi-based services, similar to what telecoms already access. This will provide more carrier options and potentially reduce voice and data costs. Additionally, the lawsuit seeks compensation for consumers who have been overcharged over the years.
- Where was the class action lawsuit filed?
- The class action was filed in the District of Columbia.
- Can I read the text of the lawsuit?
- Yes, click here for the class action lawsuit.
