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Failed MVNOs The failure of some mobile virtual network models has caused some concern, but is not slowing down progress 
Dotmobile has been added to the long list of MVNO failures. It was not hard, when I was lured to join Social networking web start-up icom, my first task was to set-up a youth MVNO. "Boll**ks" was the response from the billionaire investor to my first draft that the industry and my peers were lapping up for a youth MVNO. The truth is, apart from the obvious that he is a billionaire and I am not, is that he was right. MVNOs that just look to carve off part of the mobile market, with a mobile MNO led model are doomed to fail. At the time I was dumbfounded, now I realise he was right; with dotmobile he has the "I told you so..." which is even more annoying that him being a Bentley chauffeured business jet billionaire! The most common failed MVNOs are those we never got to hear about! Many underestimate the undertaking that is an MVNO and how long it takes to get the model right, and the MVNO never makes it to market. Once launched, the second most common failure, in my opinion and 7 years experience in MVNOs, is "Legacy" elements of the MNO excesses and MVNO forerunners; like expensive tariffs, cost based propositions, large cost bases like subsidies, flashing handsets on a small scale, or MVNOs based on the brand propositions of the past, like the Virgin Model of obtaining millions of customers when those days have well and truly passed, etc. etc. Many of these have been contributing factors to the recent demise of Disney Mobile UK, ESPN Mobile in the US and most recently Easy Mobile in the UK. For more information on why MVNOs fail and succed, see Latest article RE: Why Europe's MVNO Sing posted by Christian Borrman 21:36pm 19/11/06, updated 14:26pm 25/05/08
Related Articles: Glossary Glossary of all the terms used above on Christian Borrman's website. links MVNO Definition on wikipedia Contact / Comment ©Copyright 2001-2008 Christian Borrman, All Rights Reserved. Reproduction Prohibited |
