Taking the V out of MVNO
With so many high-profile MVNOs launching this year — Amp'd Mobile, Disney, ESPN, Helio, TúYo and Voce, to name a few — it's time to think about MVNOs in a different way.
Industry News
Blogs
Briefing Room
advertisement
Why? Because there is very little that is “virtual” about them any longer. They have developed into real companies, providing differentiated services and compelling features to well-defined users. As these new companies become operational, they are now real mobile service providers — or MSPs.
Why is MSP more appropriate than MVNO? For starters, the term MVNO describes an MSP's relationship to its host network. We've come to understand that it's not the underlying network, but the features, pricing and approach to the market — the customer proposition — that defines a new service.
For that matter, what provider isn't “virtual” in some area? Today, no telecom firm does it all. Call centers, logistics, billing, towers — just about everyone outsources something.
Finally, in addition to new entrants, we are now seeing established telecom firms becoming MSPs. Embarq, the local spinoff from Sprint, has said it will add wireless to its bundle this year, and Windstream, Alltel's landline unit, is expected to do the same. These MSPs, using others' networks, are very real and formidable.
Although virtual has become real, thankfully real hasn't equated to the same. Wireless carriers' mass-market pricing plans, handsets and content for everyone, but usually not anyone in particular. And they spend billions promoting brands they change regularly. Here's irony for you: Among the new MSPs, the Disney, ESPN and TracFone brands have been around longer than the traditional (“real”) Cingular, Verizon and T-Mobile brands.
MSPs, while offering cool handsets and services, also try to speak to a defined segment, lifestyle or niche. By tailoring services and then marketing to a segment, they provide a true value-add with rich mobile media, custom user interfaces, new technologies and even location services. Exciting new services and innovative marketing combine to build a stronger bond with customers, immersing subscribers in a total experience, not simply a handset and a service plan.
For the past several years, back when they had only a concept and were truly virtual, these MSPs were faced with the task of building a subscriber base from the ground up. Markets were researched, focus groups conducted and organizations developed. They raised money and then selected host carriers and vendors. Next came handsets and products.
Lo and behold, many of these MSPs began gelling as real companies just as they were launching new services. As they reach the operational stage, priorities are turning to distribution, pricing, features and content. In addition to fine-tuning marketing strategies, these MSPs will have to execute like every other “real” company.
They are finding that there is nothing virtual about building a subscriber base in a competitive industry, differentiating service in a crowded marketplace and pushing innovation in a world full of innovators. Getting the job done right is as real as it gets.
Recently, my conversations with general managers and chief operating officers have revolved around their efforts to build great companies and create new corporate cultures. They are introducing entirely new service offerings, building rich mobile media companies with the latest technology and redefining how content is marketed.
They are building new companies that, if successful, will be marketing leaders. And they are doing this without a road map, a problem faced by all pioneers. Creating a new category of company is an impressive accomplishment, whether or not your network is virtual. Companies that can transition from launch planning to operations and keep marketing fresh and innovative are off to a good start. Those that can keep operations lean and efficient and keep their services compelling will do well.
MVNO? MSP? For now, these new companies defy categorization. Each would define their company, their service and their market differently. One thing they will all agree on — there's nothing virtual about these real competitive forces any longer.
Whitey Bluestein, a 25-year telecom veteran, is a strategic consultant with clients in media/entertainment, retail and wireless. Bluestein (www.whiteybluestein.com) is deeply involved with MSPs, mobile TV, fixed/mobile convergence, mobile entertainment and CRM/loyalty.
Related Pages
Want to use this article? Click here for options!
© 2010 Penton Media Inc.
advertisement
Learning Library
Webcasts
Trends in Customer Activation
Join us for a look at emerging trends and technologies for more efficient, effective activation of customer accounts and services.
- Connected Business Models Series: The Innovation Engine
- Connected Business Models Series: The New Solution - sponsored by Motorola
- No Spectrum, No Problem: Learn the Potential of WiMAX on the Unlicensed Bands – sponsored by Alvarion
- Inside Telecom LIVE, Best Practices in IMS and NGN Deployment – sponsored by EXFO
White Papers
Going Beyond an Application Store
This whitepaper challenges the wireless industry to think beyond apps...
- How High-Tech Device Manufacturers Are Using Embedded Software to Grow Revenue
- Telecommunications Equipment Providers: Enhancing Customer Satisfaction, and Revenues, with Embedded Software
- IDC White Paper—Software Licensing & Entitlement Management: The Next Generation
- IPv6 Visibility and Protection: Best Practices for Managing and Securing IPv6 Traffic
Featured Content
Making the Most of Wireless Broadband
In this Connected Planet Tech Center, sponsored by Motorola, learn more about fixed wireless technology, investigate the solutions it can support... LEARN MORE
of interest
The Latest
News
From the Blog
Briefingroom
Join the Discussion
Resources
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.
Subscribe Now



