MVNO: not an easy market

Publié le par Jean Arnal


Many companies try the MVNO adventure everywhere in the world. But success is more limited. Each week we heard of a MVNO collapse and global numbers are less than impressive. MVNOs only account for few percent of global subscriber figures. The latest announcements are Qwest leaving its Sprint partner for switching to Verizon Wireless, and Embarq (despite former links with Sprint) announcing plans to shutter its wireless MVNO business. Even Virgin Mobile USA, one of the first MVNO in the world and with over 5m customers, is financially struggling and is in talks with another ailing MVNO Helio. MVNO Movida (USA) choosed a niche market, but failed in bankruptcy and was acquired by APC Wireless. NRJ (France) gave up the MVNO adventure and sold 40% stake in its MVNO NRJ Mobile to another shareholder that now controls 90% of the venture. All the news highlight the difficulties in the MVNO market. Is their business model valid?

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