Federal Reserve Board Chairman Jerome Powell testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill February 27, 2018 in Washington, DC.
Chip Somodevilla/Getty
The Fed likely won't cut interest rates until after a recession arrives, according to GlobalData TS Lombard.
The research firm said Fed Chair Powell is likely to fall into the trap of being reactionary when it comes to rate decisions.
"By not cutting now, pre-emptive is off the table," chief US economist Steven Blitz said.
The Federal Reserve is making a big mistake by not cutting interest rates right now, according to GlobalData TS Lombard chief US economist Steven Blitz.
By waiting to loosen monetary policy, Fed chairman Jerome Powell is falling into the trap of being reactionary rather than anticipatory when it comes to interest rate decisions.
Blitz said in a note on Wednesday that Powell is all but guaranteeing that they won't cut interest rates until after a recession has arrived, and by then, it will be too little too late for lower interest rates to have the intended effect of stimulating the economy.
Powell said at the central bank's policy meeting on Wednesday that one way he would cut interest rates is if there was a surprise significant hike in unemployment, regardless of where inflation is. That comment "cements" Blitz's thinking that the Fed will be too late to the party.
"By not cutting now, pre-emptive is off the table and this, in turn, guarantees that when they do cut it will be too late to avoid recession – the usual course of events," Blitz said.
Of course, Powell said during his press conference that if inflation gets back down to the Fed's long-term target of 2%, they would have flexibility in reducing interest rates, but that last mile of getting inflation back down to the target level appears out of reach for now based on a string of hotter-than-expected inflation reports so far this year.
And if inflation sees a sharp rebound to 5%, "they obviously hike" interest rates, Blitz said.
But the reactionary nature of the Federal Reserve hits on something market watchers have been cautioning about for a while, including Jeremy Siegel, who has argued that the Fed was too late to the game in hiking interest rates in 2022 when inflation was running out of control in 2021.
All-in, according to Blitz, it means that interest rates could stay at current levels for longer-than-expected, especially since it appears there will be no recession this year.
Gen. Daniel Hokanson, Chief of the National Guard Bureau, testifies before the Senate Armed Services Committee during his confirmation hearing.
Chip Somodevilla/Getty Images
House lawmakers criticized the National Guard over enlistment bonuses owed to more than 13,000 soldiers.
Nearly 4,000 soldiers have since left the service without bonuses, which can total up to $20,000.
Due in part to staffing issues and system outages, the delay comes amid the Army's recruiting crisis.
A bipartisan group of House lawmakers is demanding answers from the ArmyNational Guard on its plans to pay delinquent enlistment bonuses to the thousands of soldiers who are owed.
In a letter Tuesday to Gen. Daniel Hokanson, the National Guard's top officer, Reps. Ruben Gallego, a Democrat from Arizona; Mike Waltz, a Florida Republican; and Trent Kelly, a Republican from Mississippi, questioned how the service component has seemingly bungled how it pays its troops after Military.com reported it is behind on paying about 13,000 soldiers their enlistment bonuses.
Most recently, the Army National Guard sent out thousands of letters to former soldiers regarding potentially missed bonuses — asking them to figure out whether they're owed money. The Guard pointed them to a series of bureaucratic and time-consuming hurdles, including gathering service documentation that may be difficult to obtain.
Soldiers from the Idaho National Guard prepare for deployment to southwest Asia in support of Operation Spartan Shield.
US Army photo by Thomas Alvarez
"Civilians are not required to navigate through an extensive, monthslong claims process just to get the payments they were promised doing their job," lawmakers wrote to Hokanson. "It is deeply disappointing that the Guard believes that they can withhold payment when it involves our men and women in uniform."
The issue has gotten so out of control, nearly 4,000 of those 13,000 soldiers are estimated to have completed an entire contract, usually four to six years, and have since left the Guard without bonuses initially promised when they signed up. The bonuses can be up to $20,000.
Instead of outright telling those former service members what they are owed, the Army National Guard has instead placed the onus on them to figure it out. It's also unclear whether the Guard has updated addresses for veterans or why it can't parse through who is and isn't owed a bonus.
A US soldier with the Oklahoma National Guard stands watch along a perimeter fence near the US Capitol in Washington, DC.
US Army National Guard photo by Sgt. Anthony Jones
The lawmakers in the group are all veterans. Kelly serves as the National Guard assistant adjutant general in Mississippi.
In the letter, they included a series of questions for the Guard, including whether it has an appeals process for veterans who may end up being denied payments; how the Guard plans to support those without proper documentation; and why Guard officials burdened veterans to begin with.
"Beyond severely impacting recruitment and retention, it signals a lack of respect for their service," the lawmakers added in the letter. "Particularly for our enlisted men and women."
Soldiers are typically paid their bonuses in two chunks: when they complete their initial training and halfway through their contract. The National Guard Bureau aims for bonuses to be paid out within 30 days of those milestones, but that is not codified into policy. On average, it takes six months for soldiers to be paid when the process runs smoothly.
US Army and Air National Guardsmen participate in a Civil Disturbance Unit training event with Capitol Police in Washington, DC.
US Air National Guard photo by Staff Sgt. Hanna Smith
Meanwhile, the bonus backlog has been ongoing for years and is due to a variety of issues.
Some Guard officials have described to Military.com that some states have poorly trained or poorly performing staff to process the benefits. It isn't uncommon for state-level staff to manually track bonuses on pieces of paper or dry-erase boards, leading to numerous errors.
The backlog was particularly inflamed by two 10-month outages of the Army National Guard Incentive Management System, or GIMS, which manages bonuses. The system crashed in 2018 due to a fire in the Pentagon's servers and again in 2021 in an unrelated incident.
The news also comes amid an ongoing recruiting crisis. While there's little evidence enlistment bonuses have much of a direct impact on recruiting, they do sweeten the deal and can direct applicants to jobs in the service that are in more desperate need of being filled.
The Army is also in the midst of reviewing its education benefits for possible cuts as costs have ballooned, Military.com first reported. Congress and some veteran advocacy groups have signaled they would put up enormous resistance to the service cutting benefits.
Sony and Apollo Global Management are reportedly bidding big for Paramount.
Sony and the private equity firm teamed up for an all-cash offer of $26 billion for Paramount Global, The Wall Street Journal reported on Thursday.
The bid was officially sent on Wednesday, the Journal reported, based on anonymous sources. Sony and Apollo's offer was nonbinding, according to the Journal.
Skydance Media and its largest private-equity backer RedBird Capital Partners have also been trying to win over Paramount for the better part of a year. Business Insider's Hayley Cuccinello recently reported that the Skydance consortium, including fellow Skydance investor KKR, submitted a revised offer on Sunday.
Last week, Paramount announced its CEO Bob Bakish was stepping down. Majority shareholder Shari Redstone hasn't commented on the rumors of a sale.
This story is developing. Please check back for updates.
At the University of Texas at Austin, local police and state troopers from the Texas Department of Public Safety cleared an encampment on the university's main mall, making dozens of arrests.
Similar scenes unfolded at the University of Southern California, Emory University, George Washington University, the University of Arizona, the University of Wisconsin-Madison, Portland State University, the University of California, Los Angeles, and many more.
The protesters are calling on their universities to boycott— and divest from — companies that do business with Israel. They are also calling for a cease-fire in Gaza, where tens of thousands of Palestinians, many of them civilians, have died during Israel's scorched-earth response to the October 7th Hamas terror attack that killed at least 1,200 Israelis.
Members of the New York Police Department outside the main gate at Columbia University in New York as demonstrators protest the Israel-Hamas war.
Aaron Morrison/AP
Ralph Young, a Temple University history professor who has studied and written extensively about American dissent and protest movements, said universities are shooting themselves in the foot with their response.
"The overreaction that the universities are having is only going to magnify these protests. They're going to spread more rapidly and grow larger," Young told Business Insider. "Maybe instead of forcibly removing protesters, they should be listening to them and listening to why they are upset about the Gaza war."
A common refrain from those opposing the pro-Palestinian protests is that they are anti-Jewish or antisemitic, though many of the pro-Palestine protests have been attended by Jewish people. Israeli Prime Minister Benjamin Netanyahu has referred to the protests as "antisemitic mobs."
"The antisemitic stuff is… it may be isolated cases of it, and there tends to be somebody, maybe like Fox News picks up on it, and then kind of emphasizes the examples of that," Young said. "Whereas most of the demonstrators, from what I've seen and heard, are not doing that, and there are quite a few Jewish students that are part of the protests, too."
Police arrest more than 100 students at New York University protesting Israel's attacks on Gaza.
Fatih Aktas/Anadolu via Getty Images
The campus protests reminded Young of students protesting the Vietnam War in the 1960s, when he was among them.
"I was one of the protesters, and you were just so outraged at the terrible loss of life that was going on in Vietnam and that the United States was responsible," Young said. "So many of the students today, even though they're not being threatened to be drafted and sent over there, they see this as a humanitarian crisis."
"Back in 1968 inColumbia,where they took over the president's office, they stopped the university from functioning," Young said. "The protests were much more militant, really, than what's going on now. And the response right now is disproportionate. They're setting up an encampment. That's basically a peaceful protest."
Since the initial arrests, there have been reported incidents of violenceat some campuses.
"To do things like calling the National Guard or do military-style tactics in removing protesters is definitely not a good thing," Young said. "We don't have a good history of that. When you think of Kent State, when the National Guard was brought in there, four students were killed, and quite a few others were seriously wounded. And that, of course, just infuriated students all over the country."
The result then, and possibly now, could be even more protests, Young said.
"The way the universities are responding to them, they're not even that upset about the fact that the universities might disagree with their point of view," Young said of students. "What they're really getting upset about is that their right to free speech, the right to protest, is being stifled."
LinkedIn is introducing a new suite of games, following in the footsteps of Wordle and other popular brain teasers.
LinkedIn
LinkedIn is getting into games.
Its new puzzle games include trivia, word association, and a colorful twist on sudoku.
There are company and school leaderboards, and you can share scores with your LinkedIn connections.
If you get tired of networking the next time you're on LinkedIn, you can now take a break with one of its competitive puzzle games.
The social media site announced a new suite of games this week, seemingly looking to capitalize on the hype surrounding Wordle and other online puzzle games to keep its users coming back.
"We've designed each game to only take a few minutes, and fit right into your work schedule — whether it's prepping your mind on the commute in, taking a quick mental break between meetings, or unwinding after a long day," said LinkedIn's director of project management, Lakshman Somasundaram, in a Wednesday post.
"There will be only one edition of each game each day, crafted by the best puzzle makers in the world," he added.
The three games are available under the My Network tab on desktop and mobile, as well as under the LinkedIn News section on a browser or by going to linkedin.com/games.
In "Pinpoint," users try to guess the category that includes five different words — with the twist being that you only find out the words as you go, starting with one, then two, then three, etc. The trick is to name the category by using as few words as possible.
In Pinpoint, users have to figure out the relationship between all of the clues — with extra points for getting it before exhausting all the clues.
LinkedIn
Users playing "Crossclimb" will be asked to figure out five words from clues and arrange them in order, with each word changing one letter from the one before.
Crossclimb is essentially a trivia game, but all the answers are connected in a word ladder.
LinkedIn
"Queens" is deceptively straightforward. The goal is to place a queen in each intersecting Tetris-esque piece, while trying to ensure that each row and column has only one queen in it — essentially, sudoku without numbers.
Only one "queen" can go in each row or column, so users have to be careful.
LinkedIn
Though the games may seem simple (if a bit hard to explain), there's a spin that makes the experience unique to LinkedIn: you'll be able to see connections that have also played the day's game, and share your score with them.
The platform says it will also introduce "school leaderboards," so users can see how graduates of their alma mater are collectively faring against a college rival. "Company leaderboards" fulfill the same function.
New England Patriots owner Robert Kraft, seen here at the Super Bowl in 2024, took out full-page ads decrying what he described as 'hate' by student protesters.
Steph Chambers/Getty Images
Robert Kraft says top schools' leadership and faculty have "failed" students as protests continue.
The Patriots owner and megadonor to Columbia University pulled his support for the Ivy last week.
Protests over the Israel-Gaza war have ripped through campuses across the US.
"The leadership and faculty of so many of our leading educational institutions have failed their students," the 82-year-old sports exec wrote.
"They have not only given up their positions of authority but also their moral compasses in upholding the core missions of these colleges and universities — to protect their students and the principles of critical thinking and free speech — to teach how to think, not what to think," Kraft said in the ad.
Demonstrations have gripped campuses across the US in recent weeks as pro-Palestinian organizers protest Israel's war in Gaza. Jewish leaders on major college campuses, including Columbia, have accused protesters of targeting Jewish students with hateful rhetoric.
The demonstrators are demanding the schools divest from Israel and companies that have ties to the country, calling the ongoing war with Hamas a "genocide" against Palestinian civilians. At Columbia, students broke into a campus building and occupied it.
Kraft has weighed in before, announcing last week that he'd pull his support for Columbia over the protests.
But with his comments on Thursday — part of a campaign by his organization Foundation to Combat Antisemitism (FCAS) — Kraft goes further to put the blame on college leadership.
Kraft said he supports the right of students to protest but wrote that threats of violence and "vicious hate speech" are "completely unacceptable."
Kraft said the school's faculty and administrators are responsible.
"Unfortunately, today, hate is exactly what is being learned and taught on campuses across our country," the megadonor wrote.
NYPD arrested over 300 protestors at Columbia University this week.
Anadolu / Getty
Kraft didn't sympathize with protesters, calling for them to face consequences "when this ends."
"They need to be held accountable in order to send a message to future generations of students — that it is necessary to adhere to the rules of civil society and the codes of conduct of academic communities and that free speech means standing behind your words and accepting the consequences of your actions," he wrote in the ad.
The FCAS said in a press release it also plans to put up billboards and launch television ads as part of its campaign.
The ad campaign is the latest pushback by powerful financial backers of leading academic institutions over the Israel-Gaza demonstrations on college campuses. Kraft is one of Columbia University's largest donors; the campus' Jewish life center is named after him (and will still be getting his support).
Another top Columbia donor, billionaire Leon Cooperman, denounced the protesters as kids with "shit for brains" but didn't blame the faculty.
Campaigns led by other top university donors pushed the presidents of Harvard and UPenn to resign.
It's unclear if the protests are working. On Thursday, President Joe Biden said he wasn't reconsidering his stance on Israel, despite polling showing that young voters in his base disapprove.
A happiness response monitor awaits immigrants departing the US Citizenship and Immigration Service in Irving, Texas.
John Moore/Getty Images
Big tech companies have pulled back on PERM applications, often the first step to a green card.
Huge layoffs by Google, Amazon, Meta and other tech companies have made the process harder.
Ava Benach, a top immigration attorney, advises foreign tech workers to look beyond Silicon Valley.
Big tech companies have backed off green card applications in a big way because the process has become tougher and there's less competition for talent.
This situation is making it harder for foreign tech workers to stay in the US, and it may mean overseas candidates have to search far beyond Silicon Valley and New York City for jobs in the industry.
Google stopped so-called PERM applications in January 2023, the same month it laid off 12,000 employees. PERM is a certification process run by the Department of Labor. It aims to ensure that admitting foreign workers into the country doesn't impact US workers' job opportunities, wages, or working conditions. It's often the first step toward a green card.
Earlier this year, Googlers were told the company wouldn't restart the PERM process until at least Q1 2025, according to a current employee with direct knowledge of the matter. A Google spokesperson declined to comment.
"Tech companies have been following Google's lead and taking their foot off the pedal in terms of green card applications," said Ava Benach, founding partner of Benach Collopy, a leading immigration law firm in Washington DC.
"Google has an outsized influence here," she added. "It has a reputation for treating workers well and leading on these things, so if Google stepped back, then this gives other tech companies cover to step back, too."
Amazon and Meta moves
Earlier this year, Amazon told employees it would continue to pause all new PERM filings through 2024, according to an internal announcement seen by Business Insider.
Amazon said in the memo it had initially paused PERM applications in 2023 and decided to keep these suspended until the end of this year after reviewing "labor market conditions and immigrant requirements."
While Meta continues to undertake green card sponsorships for international hires, the process has become painfully slow. Getting a green card through Meta is now taking "a year or more," a current employee with knowledge of Meta's hiring processes said.
PERM is a lot harder now
A wave of job cuts by Google, Amazon, Meta, and other tech companies has made the PERM process more complicated.
Companies now have to demonstrate that laid-off employees are not qualified for the jobs intended for foreign workers. They also have to notify people who were laid off in the past six months about job openings before filing PERM applications for foreign workers.
"With more US workers available for open positions, the labor market test fails and so the process becomes a waste of time and money for these tech companies," Benach explained.
"If tech companies have done layoffs relatively recently, they also have to notify laid off workers of new positions that may be going to foreign workers," she added. "If some of these people say 'yes, I'm interested,' then you're out of luck with the green card application."
Meta's multiple rounds of mass layoffs reduced the company's headcount by over 20%. The company is now hiring again, but it is having to work harder to explain to US Citizenship and Immigration Services why international workers are needed.
"It's hard to justify PERM after laying off people," the Meta employee told BI.
Supply and demand
Big tech companies may also be less willing to pursue green cards because of changes in supply and demand across the tech labor market.
The industry went on a record hiring spree in the previous decade, and this only intensified during the pandemic boom. When big tech companies were fighting over a limited supply of tech talent, the PERM process was a useful weapon to wield.
"This is a cumbersome, arduous process that no one likes. It often happens when companies are competing intensely for talent," Benach explained. "Saying 'we'll do your green card for you,' is a great perk to attract the best tech employees."
"So when, like now, there are more tech workers on the market, these companies don't have to do this as much," she added. "They are not all scrambling for talent anymore, or at least not as much."
Alternatives for foreign tech workers
What should foreign tech workers do if their current employer is taking too long with PERM applications, or has stopped the process entirely?
Benach advises candidates to look outside of the Bay Area and New York City for tech jobs in the US. Many other employers across the country need people with science, technology, engineering, and math qualifications, she noted.
"It's not just Google and the other big Silicon Valley companies," Benach said. "Other companies in other parts of the country are in desperate need of tech workers."
Labor market tests for the PERM process are by their nature local. And there are fewer tech workers in other parts of the country, with some people unwilling to move far for jobs. So this makes the green card process potentially easier outside of places like the Bay Area and NYC, she explained.
Big Tech is trying alternatives, too
In an email to BI, an Amazon spokesperson said the company is working with affected employees to find "alternative immigration pathways" to extend their stay in the US.
To get around PERM hurdles, some companies are opting to classify international hires as applicants for a National Interest Waiver, the Meta employee noted.
An NIW application can be done without corporate sponsorship, so an employee can "self-petition" without a specific job offer in hand. This process classifies foreign candidates as people with specific skills and experience that would benefit the US if they became permanent residents.
NIW applications jumped in 2023, according to data from the US Citizenship and Immigration Services.
Google wants to change the roles
Google is trying to fix PERM bottlenecks. On Wednesday, it filed a letter with the Department of Labor arguing for changes that broaden the list of roles that can be fast-tracked to a green card.
This "Schedule A" list focuses on jobs the Labor Department considers to be poorly supplied with talent. It hasn't been updated in 20 years, and Google argues the list hasn't evolved to meet the needs of the modern labor market.
Google is in particular need of AI experts and the company says it will be hard to hire them all.
"We project that our need for AI Engineer roles, including Software Engineer, Research Engineer, and Research Scientist roles, will increase significantly in the coming years," Google wrote in the letter. "AI advancements offer incredible promise, but the lack of skilled professionals threatens to hinder their full potential."
Are you a foreign tech worker struggling with a green card application? Get in touch:
TikTok said it reached a deal with music company UMG to bring back some of its biggest musicians.
In February, music from stars like Drake, Olivia Rodrigo, and Taylor Swift was removed from TikTok.
The new agreement includes protections against AI-generated music.
Universal Music Group has inked a new deal with TikTok that will return some of the hottest hits to the video-sharing app.
TikTok announced Thursday that the two businesses reached a "multi-dimensional licensing agreement" that fans of artists like Drake and Olivia Rodrigo will be relieved to hear about. It comes after TikTok removed UMG artists' music in February after negotiations over an expired licensing contract heated up, meaning people couldn't post content on TikTok featuring overlaid UMG songs, for example.
In the release, TikTok mentioned protections against generative AI as part of the agreement and said it would work with UMG to remove any AI-generated unauthorized songs circulating on the platform. It has previously tested a feature that allowed users to create songs using AI.
"This new chapter in our relationship with TikTok focuses on the value of music, the primacy of human artistry and the welfare of the creative community," Sir Lucian Grainge, chairman and CEO of UMG, said.
TikTok said it would also do what it can to help artists profit more from their music being used in videos. In April, the company also partnered with AXS to sell concert tickets to its users.
"Music isan integral part of the TikTok ecosystem and we are pleased to have found a path forward with Universal Music Group," TikTok CEO Shou Chew said.
He continued: "We are committed to working together to drive value, discovery and promotion for all of UMG's amazing artists and songwriters, and deepen their ability to grow, connect and engage with the TikTok community."
In the months since UMG initially removed artists' work from the platform, one superstar connected to UMG decided to go their own way. Taylor Swift reportedly returned her music to TikTok in April, despite being a part of the initial group of artists to have their songs removed.
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If you don't use a lot of data, Tello Mobile could be the right budget carrier for you.
Eve Montie/Business Insider
With unlimited data options, free hotspot tethering, and prices as low as $5 a month, Tello Mobile makes a strong case for those seeking a low-cost cell carrier. They operate using T-Mobile's cell towers, like other mobile virtual network operators (or MVNOs) Mint Mobile and Google Fi Wireless, but have a different set of plan offerings that are geared toward low-data users, students, or simply those looking to save a few extra dollars a month.
Tello's Build Your Own plan fills a niche that many big-budget carriers tend to avoid: an essentially pay-what-you-use system meant specifically for people who aren't on their phones much — think grandparents, kids, or anyone who is most often connected to WiFi and doesn't use a lot of data. For these users, Tello's customizable plan provides exactly the right amount of data at the lowest possible rate, making it one of the best cheap cell phone plans available.
Ultimately, though, you get what you pay for with Tello, as the budget plan comes with barebones benefits — there aren't discounts for multiple lines like you might see on a traditional family plan, for example, and there are no ways to use your phone's data outside the United States.
I tested Tello's coverage, data reliability, and speeds to see how the service fared in a typical week in New York City, considering the pros and cons of Tello's various plans so you can judge whether Tello will work for you.
Plan offerings and flexibility
Tello Mobile's strength lies in its wide selection of plan options, including a range of pre-designed plans and the opportunity to create your own customized plan.
Each plan has a designated allotment of data per month before your data speeds will be throttled to 2G from 4G LTE/5G, and any additional data you use that month will be free of charge. Even the "unlimited" data plan has this threshold, with data speeds slowing to 2G after you use 35GB of high-speed data.
All of Tello's plans include unlimited texts, and you can choose an unlimited minutes option for calls or add prepaid minutes or data to your account using Tello's Pay As You Go credit. The Pay As You Go minutes are a good option if you have a minutes-only plan and want the option of data usage if you need it, and your credits will last 90 days. Here are the specifics of each Tello premade plan:
No data**, 1GB, 2GB, 5GB, 10GB, 15GB, or Unlimited*
Unlimited text, varied minutes options (no minutes or the choice of 100, 300, 500, or unlimited minutes)
Varied (ranging from $5 to $25)
*The "Unlimited" data allotment isn't truly unlimited — after you use 35GB of 4G LTE/5G high-speed data, your data speeds will slow to 2G.
**You can't combine the "No data" option with a "No minutes" option in a Build Your Own plan; you'll have to couple "No data" with at least 100 minutes.
All of Tello's plans have a data cap, which, when met, reduces users' data speeds to 2G rather than the faster 4G LTE or 5G, but any 2G data used after that cap is free so that you won't be left without means. You likely won't be able to stream video or perform even standard functions easily at that point. Still, if you regularly watch videos over data, Tello probably isn't meant for you, regardless.
There are also a few pre-made plans directed specifically at families looking to customize individual lines on their plan. While there are no discounts for adding multiple lines to an existing plan, each line can be given its own data and minutes allotment in line with the Build Your Own plan. It's also important to note that each line will have its own billing cycle, and each will be billed separately on the day the plan was activated rather than on a single billing date for the entire account.
The prices with Tello's plans are impressive — costing as low as $5 a month — but the accompanying data and minutes can be difficult to navigate for some users, even with unlimited texts. If you want the lowest possible price with the Build Your Own plan, you'll have to choose between minimum data (and zero minutes) and minimum minutes (with zero data).
If you're a frequent social media user, tend to browse off of WiFi, or use health apps that often require data to operate, you'll likely use the low data cap quickly and be stuck with 2G speeds for the rest of the month. However, if you don't use your phone much or are always connected to WiFi, you could save serious money.
Coverage area
Since Tello operates on T-Mobile's network, you can expect the coverage area to be the same — if T-Mobile works well in your area, it's likely Tello will, too.
Some areas in the western United States have less consistent coverage, so if you live in a more rural area out west, you might have spottier coverage. My testing area in New York City had consistently good coverage through the service, and in general, major urban centers are well-covered by T-Mobile (and, by extension, its various MVNOs, Tello included).
Tello's coverage is provided by T-Mobile, so if T-Mobile covers your area, you should have reliable coverage with Tello.
Tello
The downside to this is that with more users comes more network traffic, and T-Mobile prioritizes their top-paying customers over the lower-budget carriers that use their network, like Tello, Google Fi Wireless, and Mint Mobile. In those high-traffic instances, Tello users will experience slower data speeds until congestion decreases. Thus, they may be more likely to encounter a 2G connection rather than a faster 4G LTE or 5G one — even if their high-speed data allotment is not yet used up.
Service reliability and speeds
While Tello's access to T-Mobile's expansive network means that customers will likely be covered throughout much of the US, your data speeds may vary depending on your location.
In my own experience, I had no issues sending and receiving texts, making audio and video calls, and using social media apps while connected via 4G LTE or 5G through Tello, which is a good sign for an MVNO operating in a major metropolitan area like New York. I noted that the audio quality of phone and video calls wasn't the best and would cut out occasionally, both on standard phone calls and WiFi calls. However, I had no undelivered texts or dropped calls, even when I only had a few bars of service to work with.
During my week of testing, I used Tello's "Data" plan, which is their option for an unlimited data and minutes plan. I only used about 2GB of data throughout the week, which is far less than the plan's 35GB data cap (after which my data speeds would have slowed to 2G rather than 4G LTE or 5G). Even calculating a month's usage would put me under the data cap. Granted, I'm connected via WiFi the vast majority of the time (either in the office, my home, or a café, all places I'm likely to be found working most days). My usage would have skyrocketed if I'd relied solely on hotspot data.
With that in mind, Tello customers can use their mobile device as a hotspot with no additional charge, a perk many carriers will charge extra for. That said, your hotspot usage will come out of your monthly data pool, and once you use 5GB of data through a hotspot, your hotspot speeds will slow.
While connected to my Tello hotspot, I was able to browse online and watch YouTube videos with ease, but I found that it struggled to stream 4K video on Netflix, for instance. This issue wasn't necessarily surprising, as I used a hotspot rather than a stable WiFi connection. If you rely on hotspots in your preferred places of work outside the home and office or stream video frequently over data, your data allowance will be spent quickly. However, if you only use a hotspot occasionally, this perk is not to be overlooked.
Tello users can make calls using a WiFi connection via the My Tello app.
Eve Montie/Business Insider
Tello also supports WiFi calling through the My Tello app, which you might skim over as a prospective user at first but can be a key feature for some — Tello doesn't offer international roaming options, so you'd be stuck as a Tello user abroad without WiFi calling. It's not ideal, but in a pinch, it works. Within the US, though, you'll be covered as long as T-Mobile has coverage in your area. If T-Mobile is spotty for you, your data and loading speeds will likely fluctuate much more. So you might consider another budget carrier like Visible Wireless, which uses Verizon's network and may provide more coverage where you need it.
Customer support
With Tello, your initial setup will be minimal; you'll receive a SIM card in the mail, and that's just about it. The QR code on the card containing the SIM directs you to download the My Tello app, which provides a little bit more setup information and a basic walkthrough of the app's functions, and then you're set to begin your wireless service.
Since Tello is an online-only company, there are customer support channels available through the app and by phone only (with no option to visit a brick-and-mortar store for assistance), but the 24/7 chat feature is responsive and can answer most of the basic questions you might have on setup.
After choosing your Tello plan, you'll receive a SIM card in the mail with basic instructions on how to set up your new plan.
Eve Montie/Business Insider
You can also use the app to make calls over a WiFi connection, connect with the shop to purchase a new phone, or manage your plan preferences. The shop notably only provides phones that are mostly older or refurbished, which reflects Tello's baseline principle of affordability and accessibility for its customer base.
Tello Mobile's low-cost, low-data plans aren't for everyone, but they could be a huge money saver for the right person. As a prospective buyer, you don't choose Tello for its benefits, data, or even coverage, as it's outperformed by other MVNOs like Mint Mobile and Visible Wireless on all those counts. Instead, you choose it to save money.
I was overall surprised by how well Tello served me during my testing, especially as someone who tends to use more data while out in New York. I expected to hit data deprioritization quickly by using video calls and social media, and I figured a service that costs as little as Tello's couldn't be all that effective.
In reality, I was able to survive perfectly well with Tello, though using the service gave me pause in moments when I might usually reach for my phone. Lower data limits can be cumbersome, but there's undoubtedly some benefit to being able to disconnect from your device and be more present in the moment — even if it's simply so that you don't meet your data cap. And texts and calls work perfectly well over T-Mobile's network, so the basics are covered in a pinch even if you do hit your data max.
The plans can be as cheap as $5 a month; even the highest-cost plan for "unlimited" data is just $25 a month. The latter isn't the best deal for an unlimited plan, as your high-speed allotment is capped at 35GB and subject to deprioritization. In contrast, the Visible Wireless base plan offers truly unlimited data (also subject to deprioritization) for the same price of $25 a month, and the Unlimited Starter plan on US Mobile offers 35GB of prioritized data for $29 a month through its Verizon-backed network.
However, the cost and customization options make Tello's Build Your Own plan one of the best cell phone plans for its budget value — a potential steal for users who don't use a lot of data each month and don't want to pay for anything more than they use.
Tello's Economy and Value plans are both less than $15 a month, and while their data allowances are 1GB and 5GB, respectively, both include unlimited talk and text. For many users, that data will run out quickly — but if you're someone who's most often connected via WiFi, if you don't use your phone much at all, if you're traveling to the US and need a phone for the duration of your stay, or if you're a student who's paying for their own phone plan for the first time, these plans could be a perfect fit.
Ultimately, Tello is a carrier for limited-data users. Data hogs, video streamers, and those traveling internationally from the US need not apply.
FAQs
Who owns Tello Mobile?
Tello Mobile is owned by the global telecommunications company KeepCalling.
What network does Tello Mobile use?
Tello operates using T-Mobile's cellular network.
This means that the coverage provided by Tello is virtually the same as that provided by T-Mobile, though T-Mobile users will be prioritized in terms of data speed over Tello users.
Deprioritization will occur with any MVNO (unless it explicitly offers prioritized data for a higher price), as it's part of the deal with using a larger carrier's cell towers while keeping prices low for customers.
US Mobile offers single-line users, and even families and groups, a more affordable alternative to major carrier plans, much like popular budget-friendly mobile virtual network operators (MVNOs) like Mint Mobile, Tello Mobile, or Visible Wireless. However, US Mobile offers some of the best value, flexibility, and plans we've seen and experienced among MNVOs so far. In several respects, US Mobile puts these popular choices on notice.
In fact, with full access to Verizon's or T-Mobile's 4G and 5G networks, identical coverage, identical or comparable speeds, generous amounts of high-speed data, and surprisingly good prices, major carriers don't have much to boast when compared to US Mobile, either.
Plan offerings and flexibility
US Mobile has three unlimited data plans, one plan with a customizable data pool that can be shared among several lines called "Shareable Data," and an inexpensive "Light Plan" for low data users.
US Mobile's unlimited plans are among the best in the industry in terms of value and features. They're offered in either monthly or annual options; as expected, the annual option is better value. Still, US Mobile's monthly plans put forward incredible value, with among the highest data per dollar plans you can find.
Only Visible Wireless' base plan and Tello Mobile's Unlimited plan, both $25/month, offer as much or more data as US Mobile's $29/month Unlimited Starter plan. However, Visible's and Tello's plans provide deprioritized data, which could become slower if their networks are congested by people using prioritized data. Meanwhile, US Mobile offers 35GB of prioritized data, at least on its Warp network option (more on this below).
When you've used up the allotted data in any of US Mobile's unlimited plans, data speeds are significantly reduced, which is common practice for budget-friendly and MVNO carriers. However, US Mobile's plans reduce speeds to 1Mbps, which gives you some semblance of usability, at least for basic data needs, compared to the typical 256Kbps reduced speeds on many other carriers.
Plan
Data on Warp / GSM
Price per month with monthly payments / annual payments
The most distinctive thing about US Mobile is its "Warp" and "GSM" network options, which are US Mobile's nicknames for "Verizon" and "T-Mobile," respectively. No other carrier we've encountered gives you the choice between two major networks and lets you switch, making US Mobile particularly flexible.
The main difference between the two is coverage, where Warp is Verizon's network, and GSM is T-Mobile's network. The Warp network includes prioritized premium data, whereas the GSM network's data is deprioritized, but more on that below in the data speeds section. The other main difference is connectivity while abroad, which is currently only available on the GSM network option.
Which network is the best for you essentially depends on which network has the best coverage in the places you usually need it. If Verizon and T-Mobile both serve you well, the Verizon option (Warp) will consistently offer faster speeds within your data limit, as it isn't subject to deprioritization.
You can switch network options whenever you want up to twice a month via your account on a web browser. It's a fairly easy process that's essentially the same as setting up US Mobile on your phone for the first time — you use your camera to look at a QR code, tap the link that shows up, and the phone handles the rest. It takes about 15 minutes in total.
Finally, US Mobile offers multi-line discounts, which are more common in major carrier plans than on budget-friendly and MVNO carriers. More than other lower-cost carriers, US Mobile is an excellent option for families or groups.
Note that US Mobile doesn't support smartwatch connectivity. While it supports tablet data, it's only available in the Shareable Data plan, which is affordable even if it offers less value than the carrier's unlimited plans.
Coverage and data speeds
US Mobile's Warp provides Verizon's network coverage, while GSM offers T-Mobile's coverage. As such, the Warp (Verizon) network has better overall coverage that reaches deeper into rural areas, whereas the GSM (T-Mobile) network has excellent coverage in cities, towns, and highways, but it can start to decline the further you get from densely populated areas.
US Mobile's Warp network is Verizon.
Verizon
I mainly tried US Mobile with the Warp network, as I'm a Verizon customer myself and know exactly where to expect coverage and where the dark zones lurk. During my testing and general experience, I found US Mobile on Warp to offer identical coverage as full-fat Verizon, including Verizon's Ultra Wideband (UW) 5G network.
US Mobile's GSM network is T-Mobile.
T-Mobile
As far as data speeds go, US Mobile offers the full breadth of Verizon's and T-Mobile's 5G networks, including their fast high-band 5G networks.
On the US Mobile's Warp network, I reached the same data speeds I did on Verizon's 4G and 5G UW when I tested my own plan and phone against US Mobile on a separate phone (the Galaxy S24 Plus) at different locations. That's to say, US Mobile offers high-end, fast data. On the GSM network, I found that data speeds were also exceptionally fast.
US Mobile's Warp network mirrored the data speeds of a full-fat Verizon plan.
Antonio Villas-Boas/Business Insider
US Mobile's Warp network has an advantage when it comes to data prioritization. Only the Warp network includes prioritized "premium" data, where a user's data isn't deprioritized and slowed down against prioritized Verizon customers during times and places where there's network congestion. That's not to say that you'd always get the top speeds available on the Warp network — network congestion can slow down a connection, even with premium prioritization, as shown by the last speed test result in the image above.
Meanwhile, US Mobile's GSM network offers T-Mobile's high-speed data, which is deprioritized against T-Mobile customers with prioritized premium data. If T-Mobile's network is congested at a certain location and time, data speeds on US Mobile's GSM network can be affected. That's typical for an MVNO. However, we haven't found that deprioritization poses much of a problem after testing T-Mobile and MVNO carriers that run on T-Mobile's network. Additionally, there's no indicator that suggests data is being deprioritized, and it can be hard to tell.
I tried US Mobile's customer chat support via the app, and I was pleasantly surprised by the responsiveness and ability to exchange messages with a real person.
US Mobile's app is easy to use for data and plan management.
Antonio Villas-Boas/Business Insider
I didn't run into experience-breaking issues, so I couldn't test the effectiveness of US Mobile's support to fix a problem that affected connectivity. Still, there's a support phone number you can call to speak to someone, which can prove to be more efficient than a text-based chat service.
As far as the app goes, it's quite well laid out and easy to navigate to manage your plan and check up on data usage. However, the app currently lacks a way to switch between the Warp and GSM networks, as you have to make that change through a web browser.
Should you sign up for US Mobile?
US Mobile offers exceptional value for a range of use cases with its varied offerings.
While US Mobile's Unlimited plans aren't the absolute cheapest, they're not far, and they're quite simply the best. The small extra cost relative to other MVNO plans can easily be justified by the astounding option to switch between Verizon's and T-Mobile's networks — it's a singular and useful feature I've never seen before, whether on a budget or premium carrier, and it actually works.
US Mobile's multi-line discounts are also unique among MVNO and budget-friendly carriers, making it an ideal option for families.
The fact that US Mobile doesn't utterly deaden your data speeds after using up a month's data allotment, like most other carriers, is also a major benefit. Your speeds are reduced to a slow 1Mbps, but it's still usable for basic functions. To be sure, it's unlikely that most people would ever exceed 35GB in a single month, but it's nice to know you won't be totally disconnected if you do.
FAQs
Which networks does US Mobile use?
US Mobile runs on Verizon's and T-Mobile's 4G and 5G networks and offers the unique ability to switch between the two networks.
The MVNO's Verizon-backed network is called Warp, while its T-Mobile-backed network is called GSM.
Is US Mobile deprioritized?
US Mobile features allotments of prioritized data through its Verizon-backed Warp network, while data on its GSM network is subject to deprioritization behind T-Mobile's premium customers.