( ENSPIRE Business ) TextNow CEO and Co-Founder Derek Ting on Why Taking Control of Your Wireless Bill is Another Form of Ownership
ENSPIRE Contributor: Violet Tong
For entrepreneurs, small business owners, and everyday consumers, ownership is often about more than what you build. It is about having greater control over where your money goes. As rising costs force people to examine everything from household expenses to business overhead, even something as essential as a phone bill has become part of that conversation.
Derek Ting, CEO and co-founder of TextNow, has been challenging the traditional wireless model since launching the company in 2009. What began as an idea to make texting over the internet free has evolved into a wireless service offering free talk and text on nationwide 5G, with customers able to add data based on their needs rather than committing to a traditional monthly plan.
Now, TextNow is bringing that philosophy to a national audience with “Way Too Smart to Pay Dumb,” the company’s largest brand campaign to date. The message is intentionally provocative: consumers should not have to accept expensive, inflexible wireless plans simply because that has traditionally been the industry standard.
Ting discusses why consumers are increasingly questioning what they pay for wireless service, what he believes major carriers still get wrong, and how greater flexibility can help entrepreneurs control overhead while building businesses on their own terms.
“Way Too Smart to Pay Dumb” is TextNow’s biggest brand campaign yet. Why was this the right time to make such a major investment in marketing and launch TextNow’s first major national brand campaign?
Derek Ting: Since 2009, we have been building a product that works: free talk and text on nationwide 5G with the option to add data plans with no commitment. But we have never told that story out loud. Right now, everyone is feeling their pockets squeeze, and more people than ever are looking at their phone bill and asking why it costs what it costs. That’s the moment. People are ready to hear that there’s a smarter option for phone service, and now we have the scale and the track record to say it with confidence on a national stage.
What inspired you to create TextNow, and what gap in the industry did you see that others were not addressing?
DT: I started TextNow in 2009 because texting was expensive and limited, even as smartphones were becoming more common. I wanted to build an app that allowed people to text over the internet for free. As the years have gone on, the same ideology hasn’t changed and is what drives TextNow today. We want customers to stay connected without overpaying. Millions of people use it to call and text without a monthly plan and upgrade their data only when they need it.
If you could change one thing about the wireless industry today, what would it be and why?
DT: Plans have gotten more flexible on paper, but what hasn’t changed is what happens when your life does. There aren’t a lot of options if you need to scale back for the month, and you still get penalized or, worse, cut off if you miss a payment. I’d get rid of that. Flexibility should work both ways. If a plan can’t flex down with you when things get tight or your needs change, it was never really flexible to begin with. That’s the gap TextNow is built to close.
What consumer trends or market shifts convinced you that people are ready to rethink traditional wireless plans?
DT: We recently commissioned a national survey of Gen Z and Millennials, and the numbers back up what we’re building. Ninety-two percent believe consumers should be able to pause or reduce their plan without penalty, and nearly half told us what they currently pay doesn’t even match how they actually use their service. On top of that, we’re seeing how central a phone plan has become to how people earn a living. Eighty-one percent of gig workers said having the right plan is important to their success, and more than half said poor connectivity or running out of data has cost them a negative review. Put those numbers together, and it’s clear: flexibility isn’t a nice-to-have anymore. It’s the baseline people expect. That’s exactly the shift TextNow speaks to.
What do you think major wireless carriers are still getting wrong about what customers want today?
DT: Carriers today are still designing plans around the carrier’s convenience, not the customer’s actual usage. Most people don’t need the same amount of data every single month, and they definitely don’t want to be locked into paying for it whether they use it or not. Plans are also not one size fits all. Everyone needs something different at different times, for different reasons. Customers want control and flexibility. Carriers are still holding onto a model that takes that control away.
TextNow has built its business around free talk and text with flexible data options. How has consumer adoption of that model evolved over the past few years?
DT: Free talk and text has brought in people who never thought wireless could work that way. What’s changed is that this isn’t a niche audience anymore. A broadening group of consumers is looking for a smarter option than the traditional carriers and wants wireless on their own terms. Our introduction of eSIM has made switching easier, and we have seen more people feel comfortable making the move without friction. In fact, 45 percent of TextNow’s user base uses TextNow as their main and only phone service.
How does TextNow’s model specifically empower entrepreneurs or small business owners who are looking to scale while remaining mindful of their overhead?
DT: Entrepreneurs or small business owners have options when using TextNow. They can use it as a more flexible option to traditional carriers as their primary line or use TextNow as a dedicated second line strictly for their business. When you are running your own business, every fixed cost matters, and a wireless bill shouldn’t be one of the ones that’s harder to control than your rent. Our model lets business owners flex with their business instead of being a fixed cost they’re stuck with regardless of how things are going or how much data they need.
If there’s one thing you hope people take away from this campaign, what would it be?
DT: That being smart with your money is a flex and something to be proud of. You shouldn’t have to choose between good service and a fair price. If this campaign gets even one person to stop and ask, “Wait, why am I paying for this?” then that’s the win for us.
For Ting, the larger conversation surrounding TextNow extends beyond lowering a monthly phone bill. It is about giving consumers the ability to make decisions based on their actual circumstances instead of being locked into a model that may no longer serve them. That philosophy carries particular weight for entrepreneurs and small business owners, for whom every recurring expense can affect the ability to grow. Whether TextNow serves as a primary phone service or a dedicated second business line, Ting sees flexibility as another way founders can maintain control over operating costs as their needs change.
And that ultimately connects TextNow’s mission to the broader meaning of ownership: having the freedom to decide what works for you, what you are willing to pay for, and when your needs require something different. In an industry built largely around fixed monthly plans, TextNow is betting that more consumers are ready to question the status quo and recognize that staying connected doesn’t have to mean giving up control.
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