Does the MVNO model work?

Today ESPN announced they will be pulling the plug on their cellular service. Lack of customer interest is cited as the reason. ESPN will continue to provide content for other service providers, but will close down their MVNO business. This follows significant speculation on the potential for MVNOs, a quick fall from being the next big thing to questionable opportunity. Earlier this week Amp'd, an MVNO on the Verizon network, announced expansion to new distribution channels, including Circuit City, along with mainstream advertising campaigns. These announcements raised the positives for the MVNO business, a day or two later we are looking a highly publicised MVNO closing the doors. I belive the MVNO business will be strong for some players, including ESPN's parent Disney; however, success is not guaranteed. For ESPN the business model of distributing their content through the large MNOs and MVNOs is probably a much bigger, and more profitable, opportunity than running their own MVNO.

 

Published Thursday, September 28, 2006 12:58 PM by davet
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