Say hello to yet another MVNO. Andy takes the covers off XeroMobile, a Los Angeles based MVNO, which he says has raised $300 million in European money. No details on who the investors are, and what is the game plan, but like two other Southern California companies – Helio and Amp’D – it has attracted major dollars. Earlier this month, sports junkies focused ESPN Mobile launched at the Superbowl.
Many of the newer entrants seem to be skating on thin ice. Despite some over optimistic surveys and general enthusiasm (more than three dozen different MVNO operators already) the biggest (and only notable and notable success thus far) have been two: Virgin Mobile and Boost Mobile. A few of the low-price resellers aka MVNOs are doing well but purely on price.
I like to think of MVNO as the new CLECs (competitive local exchange carriers) that were going to eat Bells’ lunch. What they did instead, ate up lot of investor dollars. Why? because CLECs depended a lot on the Bell pipes. MVNO’s are no different – they depend on the generosity of wireless carriers. Of course, carriers would be happy to help, if you give them a piece of the action as both Boost and Virgin did.