San Antonio based Pocket Communications has raised $100 million and plans to launch Pocket Communications Northeast. Quite a feat in this interesting economic climate. Pocket Communications offers prepaid wireless services and claims 300K customers in its Texas markets. It offers flat rate, unlimited calling and messaging plans that range from $25 to $40 month. Pocket has demonstrated a no fear attitude by taking wireless behemoths head on, with a “no frills” wireless service. They don’t offer data plans, and don’t seem to have an intention to do so. There first launch city was AT&T’s home turf of San Antonio, TX. They utilize spectrum obtained in past AWS auctions.
Their new venture aims to take this established model into highly competitive Northeastern U.S. markets. “Pocket is really changing the unlimited wireless game, which has been successful against legacy wireless providers but mostly limited to single market footprints for many years,” said Matt Niehaus, Partner, Battery Ventures, an investor in Pocket Communications Northeast. “With the Pocket Northeast launch, the company will push beyond the norm and establish a broad footprint unlimited use network, serving consumers and business users across multiple markets…,” he said. Pocket is looking to exploit value conscious wireless subscribers who are not interested in smartphones, but are interested in unlimited talk and SMS for a known fixed price. They’re a private company, so it’s hard to evaluate whether this strategy works, especially in an environment where wireless data is the fastest growing revenue segment for established wireless carriers.