The subject of MVNOs can be so touchy that half of the VC panel wouldn’t even try the question: would you invest in a start-up MVNO? Stewart Alsop, a partner in Alsop Louis Partners, had no such qualms, comparing Helio and Amp’d and suggesting that Helio has the better chance because it has more money. (He mentioned a friendship with Helio’s Sky Dayton.): “Amp’d is always on the cusp of running out of money because it takes so much to acquire a customer.
As for the possibility of MVNOs to succeed, today’s sale of Virgin Mobile shows money can make money … sometimes.
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