The brand’s the thing

Score one for supporters of the mobile virtual network operator, or MVNO, model for offering wireless services: British import Virgin Mobile USA announced this morning that it has chalked up 350,000 subscribers in its first six months of operation.

For those not familiar, the basic idea behind the MVNO approach is for a company with a recognizable name and broad consumer reach to hook up with a partner that’s already operating a mobile network, rebrand services from that network operator and target them toward very specific demographic markets with highly customized service plans and offerings. (In the case of Virgin Mobile USA, the network operator partner is Sprint PCS, and the demographic sector is the youth market).

The early success of Virgin Mobile USA is a nod to the power of brand recognition, as well as a sign that there are potentially dozens of wireless service provider start-ups that have yet to hit the public’s radar screen. I use the term “start-up” loosely, because it’s a bit of stretch to call any offspring of Virgin Group--let alone some of the other behemoth brands that could pursue the MVNO strategy--a start-up. But that’s really the point: Established and highly recognizable brands of all kinds will represent the next wave of wireless service offerings because they are the ones who can appeal to various target markets.

Think about it: Disney could partner with a mobile network operator, brand wireless service that’s targeted toward even younger kids than the ones Virgin pursues, and sell it through its retail stores in malls and airports--or even through kiosks throughout its theme parks. Borders could link up with a wireless carrier partner and, together with the publishers/producers of the Harry Potter empire, market wizardly themed wireless service at its stores and Web sites. Marvel Entertainment could sell Spidey Service to the comic book crowd. How about a Gap phone, or wireless service from Starbucks, or Target Mobile? The list of possibilities is endless (and, to be sure, a bit ominous).

In the wake of massive spending on next-generation infrastructure upgrades for their networks, wireless carriers are smart to pursue any and all methods of loading up their new and improved airwaves with as much revenue-generating traffic as possible. That motivation, along with the hunger of any and all purveyors of big brands, will proliferate wireless usage, create more opportunities for developers of wireless network operations software and mobile apps, and help shore up the future of the industry sector in general.

Contact me at jmeyers@primediabusiness.com.