MVNO’s – The Upcoming Giants In The Wireless Industry

An MVNO typically possesses access to and name recognition in a specific market niche, which enables it to leverage its brand to drive diversified revenues, such as those from a wireless service. And, when looking at trends in the wireless industry toward customization, it becomes clear why MVNO’s are well-positioned to drive wireless growth. In short, MVNO’s are all about customization. Take for example the best-known and one of the largest to date is Virgin Mobile, which launched its youth-targeted prepaid service in July of 2002 and in only two-and-a-half years boasts 3 million users. Virgin enables users to perform most standard data functions through VirginXtras, and even offers some 3G capabilities to Virgin customers.

Demographic targeting is a trend MVNO’s and 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 cellular brands have sprung up to better service this niche. Other major brands are poised to jump into the wireless industry as MVNO’s. 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 the ESPN MVNO will leverage the brand’s strength to sell top-to-bottom cellular service to committed sports fans, by offering scores, live game updates, and select video clips to 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 seeking to compete against the major providers based on early access to technology not offered by the major U.S. players.

These companies, along with other potentially successful MVNO’s, have more than simple brand recognition—their brands withstood the test of time. As with all modern offerings, convenience should not be overlooked. For example, American Airlines customers could book travel via their phones, use their phones for automated check-ins and to check on flight status, and for mile-for-minutes (or vice versa) rewards. Credit card companies could offer services incorporating pay-via-phone functionality for retail purchases. Movie Theater chains could offer automatic notices of movie schedules with one-click (or button) advanced ticket purchases. The potential here is endless.

Many of the services and benefits listed above can also be achieved via partnership, and it is reasonable to expect that many brands will seek relationships with major wireless providers for customized packages that deliver commissions (or other forms of added revenues from the relationships) without the need to operate their own wireless telephone operations.

There are many benefits a MVNO can provide to a much larger cellular service among which SMS to Email – Bulk SMS Gateway services [http://www.mobility4enterprise.org/] are the significant ones. The MVNO solution provider can customize its product to cater to a very distinct segment of the market. With the mobile revolution sweeping the globe, enterprises are realizing the power of mobility in terms of better customer reach and improved efficiency.