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Can We Close The Book On MVNOs Now?
from the or-will-they-rise-again? dept
Back in 2002, there was suddenly a lot of buzz about how MVNOs (Mobile Virtual Network Operators) were going to be the next big thing. The idea was that any brand could start offering mobile phone service just by slapping its brand on mobile phones that would work on someone else's network. Then you could have a company with a huge brand jumping into the mobile phone space, adding various "synergies" (gag) from other business lines, without having to worry about the technical infrastructure of running a mobile network. The problem, which really was sort of obvious from early on, was that no one could explain why anyone would want to buy mobile phone service from a non-mobile phone company. And, indeed, all of the "big brand" MVNOs died rather gruesome deaths.
The second generation of MVNOs were supposed to be different however. Names like Amp'd and Helio weren't building on existing brands, but planned to build up huge new brands by themselves, and would do so by focusing on the high end, offering all sorts of neat phones, applications and services that the big mobile operators were afraid to offer. Actually, the reality was that the big mobile phone operators knew enough to recognize that people just didn't want those things, which is why they weren't offered. Amp'd flamed out spectacularly, burning through $360 million and attracting a negligible number of customers.
And, now, Helio has basically given up the ghost as well, selling off to Virgin Mobile -- about the only mobile phone MVNO that has managed to hang in there. From the sound of it, Virgin basically was doing a favor to Helio, to make its initial backers (Earthlink and SK Telecom) save a little face, rather than just shutting down the service.
So, with this, can we officially declare the era of the MVNO over? Or will we see breathless reports a year or two from now from new analysts in the space claiming a great new market in "branded" mobile phone services?
