Enter Movida

It's been almost four years since Virgin launched the first mobile virtual network operator in the U.S. over Sprint's network, and since then the MVNO hasn't exactly been the rocket ship we imagined. Sure, there have been some notables--Nextel's launch of Boost Mobile and a few retail-branded services here and there. Otherwise there's only been a lot of hoopla about potential MVNOs that haven't quite yet materialized: Disney's ESPN mobile service and AT&T's enterprise-geared service AT&T Mobile. Basically, aside from a few services targeted at youth, we haven't seen much segmentation.

That changed today, however. Sprint revealed its latest partner Movida, a carrier selling its services directly to a minority population--namely the 40 million Hispanics living in the U.S. While there have been resale carriers that have targeted Hispanics in the past, Movida appears to promising something beyond the value repackaging of another carriers minutes. In fact, its major investor the Latin American media conglomerate is promising to bring its entertainment resources to mix, offering content from the likes of Univision and other Spanish-language brands to Movida's portfolio. Apparently the deal goes well beyond marketing and a Spanish-speaking customer support. Movida will presumably leverage Sprint's 1X data network and messaging services as the carrier launches value added services--all in a pre-paid bundle.

Such a service fits almost perfectly into Sprint's MVNO strategy. The carrier long ago insisted that it would seek out partners that would go after segments it had trouble reaching or couldn't reach at all. Talk about a market where Sprint has very little traction. I'm no marketing whiz, but I doubt Sprint's serious-dude-in-a-trench-coat-aiding-soccer-mom ads are making much of an impression on the typical Hispanic viewer. And considering that the majority of Hispanic subscribers are on pre-paid plans today (which Sprint doesn't offer), Sprint might have just found itself the perfect MVNO.

Contact me at kfitchard@primediabusiness.com.