Forget carriers: your next phone plan could come from an app

Carriers are increasingly making it easier for independent companies to launch their own wireless brands. Last year, T-Mobile unveiled “Your Name, Our Wireless,” a program where virtually any business can set up its own carrier, with T-Mobile doing most of the heavy lifting. Now AT&T is taking a similar step, though with a few twists.

Instead of running everything directly, AT&T is working with Gigs, a Mobile Virtual Network Enabler (MVNE) that provides the back-end tools needed for others to create and manage prepaid services on AT&T’s network. Another big difference is that Gigs OS is designed for tech companies that want to integrate connectivity into existing apps and services, rather than for companies aiming to launch stand-alone prepaid brands.

It’s no secret that all three major providers have been looking for new ways to expand revenue. With consumers more loyal to specific apps and services than ever, it makes sense for AT&T to leverage that loyalty as a growth opportunity. Consumers already trust these apps and services, which makes them much more willing to try out their cellular plans as well.

As AT&T’s VP of Emerging Business Platforms & Partnerships puts it, “We believe we’re at the cusp of a new era, where telecommunications and consumer technology will converge to deliver outsized innovation and value to providers, partners, and consumers alike.” He paints a future where consumer plans could be purchased and managed directly inside dozens of different personal or workplace apps.

For now, fintech is leading the way. Klarna and OnePay are the first to officially partner with Gigs to bring mobile service to their financial-focused apps. Still, it’s easy to imagine this model spreading to messaging apps, social platforms, and more. There’s also a good chance many more apps are on their way and yet to be announced.

Is this a good idea? Here’s why I’m a little nervous

What makes this new Gigs-led effort especially interesting is that Gigs-based cellular plans are apparently allowed to openly acknowledge that they run on AT&T’s network. That kind of transparency is rare. Most prepaid carriers are restricted from naming the networks they use. For example, US Mobile operates on all three majors but markets them under its own “Warp” (Verizon), “Dark Star” (AT&T), and “Light Speed” (T-Mobile) branding.

This openness could be a real plus for everyday users. I recently had to explain multiple times to my mother-in-law that some prepaid networks run on the same towers as T-Mobile and would work in her area before it sank in. She’s not alone. Many non-techies assume prepaid carriers have their own networks or have more limited access to towers. Gigs-powered apps would eliminate that confusion by making it clear they’re running on AT&T’s network.

Let’s be honest, customer service across prepaid and postpaid has declined sharply in recent years. I already hear horror stories from friends, family, and Reddit about troubleshooting prepaid issues. Removing the human element entirely while targeting everyday consumers (many of whom aren’t especially tech-savvy) through their favorite apps? Yeah, what could possibly go wrong?