The early buzz from the market and people in the know is that the consumer MVNOs launching are not hitting their numbers…and hopefully this will create some meaningful discussion at CTIA, rather than the hype.
From the industry insiders I have spoken: Virgin Mobile’s number are flat to dropping (more issues than can be posted here), and then the two new MVNOs Mobile ESPN and Amp’d, from people I have spoken too, are nowhere close to expected. What gives? Well, for one, there are endemic issues with all sectors of the MVNO market, and competition with incumbents whose lines they are leasing. Then there is an intractable problem: the U.S. market is at or near saturation, and everyone is locked into a contract. If you can’t get out of a contract, you are not moving to an MVNO just because there is live TV on it.
On competition, if you’re targeting the youth market, there is very little MVNOs can do against the aggressive family plans the main operators have. Again, aspirational only works if you have the disposable income. I could go on and on, but just thought I would leave you with this thread to think over at CTIA.
Also, read this cover story from Telephony Online: “The brand vs. the bottom line.” For
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