MVNO’s – The Next Giants in the Wireless Industry
An MVNO typically has access and name recognition in a specific market niche, allowing it to leverage its brand to generate diversified revenue, such as from wireless service. And looking at trends in the wireless industry toward personalization, it’s clear why MVNOs are well positioned to drive wireless growth. In short, MVNOs are all about personalization. Let’s take the best known and one of the largest to date as an example: Virgin Mobile, which launched its prepaid service aimed at young people in July 2002 and in just two and a half years it has 3 million users. Virgin allows users to perform most standard data functions through VirginXtras and even offers some 3G capabilities to Virgin customers.
Demographic targeting is an MVNO trend and one that some recent entries have focused on. 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 like 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 the major wireless carriers, but ESPN MVNO will leverage the strength of the brand to sell a top-to-bottom wireless service to sports fans. engaged, by offering scores, live game updates. and select video clips for subscribers. Earthlink is launching a new MVNO service with Korea’s dominant cell phone provider, SK Telecom. Unique among other offerings, the Earthlink/SK Telecom joint venture is a high-tech postpaid 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 travel through their phones, use their phones for automated check-in and flight status checks, and 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 alerts of movie times with one-click (or button) advance ticket purchases. The potential here is endless.
Many of the services and benefits listed above can also be achieved through a partnership, and it’s reasonable to expect many brands to seek relationships with major wireless carriers for commission-generating custom packages (or other forms of additional revenue from relationships) without they need it to run their own wireless phone operations.
There are many benefits that an MVNO can provide to a much larger cellular service, including SMS to Email – Bulk SMS Gateway Services [http://www.mobility4enterprise.org/] are the significant ones. The MVNO solution provider can customize its product to serve a very different segment of the market. With the mobile revolution sweeping the globe, businesses are realizing the power of mobility in terms of better customer reach and greater efficiency.