Technology

MVNO: the next giants of the wireless industry

An MVNO typically possesses access and name recognition in a specific market niche, allowing them to leverage their brand to generate diversified income, such as from a wireless service. And, looking at the trends in the wireless industry toward personalization, it becomes clear why MVNOs are well positioned to drive wireless growth. In short, MVNOs are all about personalization. Take, for example, the best known and one of the largest to date is Virgin Mobile, which launched its prepaid service aimed at young people in July 2002 and in just two and a half years has 3 million users. Virgin allows users to perform most of the standard data functions through VirginXtras and even offers some 3G capabilities to Virgin customers.

Demographic targeting is a trend that MVNOs have focused on in some recent entries. Take a staple of the prepaid calling card industry; the Hispanic market. Some 40 million Hispanics live in the United States, and two cell phone brands have emerged to better serve this niche. Other major brands are poised to jump into the wireless industry as MVNO. ESPN, for example, is set to leverage its content to serve sports fans. ESPN, like its competitor Fox Sports, already offers certain services to users of all major wireless carriers, but ESPN MVNO will leverage the strength of the brand to sell cellular service top-down to committed sports fans. offering scores, live game updates and curated video clips for subscribers. Earthlink is launching a new MVNO service with Korea’s dominant cell provider, SK Telecom. Unique among other offerings, the Earthlink / SK Telecom joint venture is a postpaid high-tech offering that seeks to compete with major providers based on early access to technology not offered by major US players.

These companies, along with other potentially successful MVNOs, have more than just brand recognition – their brands have stood the test of time. As with all modern offerings, convenience should not be overlooked. For example, American Airlines customers can book trips through their phones, use their phones for automatic check-ins and check flight status, and to earn miles per minute rewards (or vice versa). Credit card companies may offer services that incorporate pay-by-phone functionality for retail purchases. Movie theater chains could offer automatic movie-time alerts with advanced one-click (or button) ticket purchases. The potential here is infinite.

Many of the services and benefits listed above can also be achieved through a partnership, and it is reasonable to expect that many brands will seek relationships with major wireless service providers for custom packages that provide commissions (or other forms of additional income from the companies). relationships) without it they need to operate their own wireless phone operations.

There are many benefits that an MVNO can provide to a much larger cellular service, including SMS to email services: Bulk SMS gateway [http://www.mobility4enterprise.org/] They are the most important. The MVNO solution provider can customize its product to serve a very different segment of the market. With the mobile revolution spreading across the globe, companies are realizing the power of mobility in terms of better customer reach and greater efficiency.

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