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More signs of future MVNO growth

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At the Prepaid Press Expo this year, one panel I moderated focused on MVNOs in America over the next five years. With so many high profile MVNOs disappearing over the past three years — either through bankruptcy or acquisition from a larger carrier — you might think that MVNOs on the whole aren’t a great idea. Recent developments suggest this might not be the case. MVNOs can work, as evidenced by most of Europe, but it has to be under the right circumstances. As these circumstances present themselves in American and other nations with a low level of MVNO usage, we could see an increase in worldwide MVNO patronage.

Could Japan’s NTT DoCoMo be headed stateside?

This news spread a bit over the weekend: NTT DoCoMo, the large Japanese carrier, might be considering a US MVNO. According to the linked TeleGeography story, the carrier has ties to AT&T and T-Mobile, both of which use GSM networks. It does have some plans for next-gen service, which would point towards AT&T, or even Verizon, which should have their LTE network up and running in a number of markets in the second quarter of next year. T-Mobile would be an interesting option. There are no major MVNOs on its network, and with its lagging behind the top three carriers, an MVNO like DoCoMo could provide a boost.

Prepaid carrier PlatinumTel introduces unlimited plan

It’s starting to feel like an unlimited voice and messaging plan is necessary to compete in the prepaid space these days. One company after another is adding one, and now we’re starting to see the under-the-radar carriers, including MVNOs, making this type of offering. The latest is PlatinumTel, which should have had a review up at this site a long time ago. They’ve introduced a flexible prepaid unlimited plan which allows customers to pick the length of their service.

Check out Red Pocket Mobile for cheap calls to Asia

I just got back from the Prepaid Press Expo 2009, and was fortunate enough to moderate a few discussion panels. Among the more interesting was a presentation by Joshua Gordon of Red Pocket Mobile. We don’t have a review of his service up yet, but after watching his presentation and seeing what his company is all about, you very well may see it in the left sidebar soon enough. It’s a niche MVNO, operating on the AT&T network. The rates might seem a bit above average, but the beauty of Red Pocket is that it provides calling with no long distance charges to destinations like China, Hong Kong, Singapore, and Taiwan. This makes it an attractive choice for people living in the US who have family and friends in these areas. It’s also an example of an MVNO that is staying ahead of the curve and not falling victim to the mass extinction.

MVNO Qwest officially done with wireless

The news of Qwest leaving the wireless business actually reaches back to May of 2008. Unhappy with their MVNO agreement with Sprint, Qwest signed on with Verizon. While that was an agreement to resell cellular services, it was not an MVNO agreement. Instead, Qwest would resell Verizon-branded wireless services. A few months later Qwest started a campaign to port customers to Verizon, which was the beginning of their wireless phase-out. That process will conclude on October 31, when Qwest officially closes for business.

Ad-funded MVNO Blyk ends services

Back in May we heard that ad-funded UK MVNO Blyk would shut its consumer operation in favor of offering managed services. The company immediately denied the allegations. “We are not closing shop,” said spokesperson Ann Sarimo. That was either a lie, or something changed between then and now to cause Blyk to do the exact thing commentators said they’d do: offer managed services. We learned earlier this week that Blyk “is no more”. It will instead sell its advertising technology to interested providers, starting with Vodafone Netherlands. So it looks like the ad-funded model just won’t work. Apparently, advertisers enjoyed it more for market research purposes, so there wasn’t much for long-term prospects. While it’s sad to see them go, I wish they hadn’t so vehemently denied what would eventually come true.

More truth on Zer01

Just this morning we linked to an IDG News Service report that shows some shady dealings from Zer01 Mobile. As I made my news rounds this morning, I came across yet another Nancy Gohring report, this one a follow-up to the original. A key component of the first report was Zer01 CEO Ben Piilani’s relationship with Mark Petschel, a multi-level marketer who has been convicted of securities fraud. “The two first met in May,” the original said, with Piilani as the source. Gohring later noted Piilani’s claim that he didn’t know about Petschel’s legal history until recently. The new report, also by Gohring, places a question mark on that claim.

Truth starting to come out about Zer01

Leading up to July 1, there was no shortage of hype surrounding Zer01, the company which promised unlimited voice, messaging, and data for $70 per month. In the days leading up to their launch, they sent out some questionable marketing materials, claiming speeds equivalent to 5G. Yes, as in an entire generation faster than 4G, which won’t be deployed until later this year. I expressed my doubts, and many commenters chimed in as well. Now that the service has been “live” for a few weeks, we’re starting to learn a bit more — and it’s not good. Nancy Gohring of IDG News Service (via PC World) takes a deeper look at the operation.

Zero1 starting its marketing blitz for July 1 launch

The story of CTIA this year was Zer01, a company touting unlimited voice, messaging, and data services for just $80 per month. The remarkable part of the story is that they’d be doing this as an MVNO of the AT&T network. Of course, when we first heard of Zer01, the advertised price was $70. Now it’s $80. It looks like you might get something extra for that $10, if we’re to believe their most recent press release. Details after the jump.

Free MVNO Blyk to discontinue service…or not

On Wednesday we got word that Blyk, the free MVNO for UK teens, would be ceasing their consumer offering. Since all we knew of them was said consumer offering, it appeared as if they were through. The report in New Media Age claimed that it would instead sell its technology to operators, who could then take advantage of the ad-serving platform Blyk uses to generate a profit. However, from what we heard later, this might not be the case.

New MVNO offers unlimited voice and data for $70

With the death of many MVNOs over the past few years, I’ve wondered what it would take for a new MVNO to survive. Certainly, it would have to be a service offering premium features for a non-premium price. New MVNO Zer01 might have found that. They’ve launched an unlimited calling service, making it comparable to many current MVNOs. They’ll run on the AT&T network and will allow customers to bring their own GSM phones for activation — a huge plus in the prepaid market. After the jump, a few details on the company.

Free MVNO Blyk changing structure

We love us some Blyk here at Prepaid Reviews. Their success with a free, ad-funded cellular model should be a lesson to us all. Word got out yesterday that the company would change the way it handles users accounts. Uh oh. That’s usually not a good thing. In this case, however, it is. They’re still giving their users, aged 16 to 24, free service. They’re just giving them more free services.

How will MVNOs fare this holiday season?

Not every MVNO can be like Blyk. Notably in the U.S., MVNOs haven’t proven the most reliable business model. However, with the economy on the downturn, many people are looking to prepaid wireless to reduce overall phone bills. Does this mean that MVNOs will see more business, especially as we head into the holiday season? Probably. But it’s not all good news, according to analyst Tole Hart.

Blyk takes service to next level with mobile content

Is free cell phone service possible? According to Blyk, the free UK MVNO, it is. We heard just a few months ago that they hit the 200,000 subscriber mark after just a year of being in service. That is double what they had forecasted. They’ve made their income stream known, and are now adding another level to it. The’ve announced a partnership with platform provider Velti which will deliver mobile content to its users beginning in January.

Nokia to become MVNO in Japan

When Mark Lowenstein discussed MVNO 2.0, he cited Apple as a good example. They might not be an MVNO by traditional definition, but their device created a wider market for data services. They don’t buy minutes wholesale, but they do benefit when AT&T sells bundles of minutes to iPhone customers. It appears Nokia is going to try something similar in Japan. They’ll start an MVNO in 2009, using NTT Docomo’s network.

How to make money by giving away cellular service

The last time we checked in with Blyk, the UK MVNO which provides free cell phone service to teens, they were celebrating their 200,000th subscriber. It took them just a year to reach this number, which is quite impressive to say the least. One might be wondering, though, how exactly they turn a profit if they’re not charging for basic services. They can’t be totally ad supported, can they? The short answer is no. The long answer is explained by Telco 2.0. After the jump we’ll go over the highlights, but if you’re really interested in this business model I’d suggest reading the whole thing.

Airlink Mobile powers new MVNO Simplexity

A new MVNO? Who woulda thought it, especially in these times? Apparently, though, it’s going to happen. It begins with one MVNO, Airlink Mobile, which is partnering with Simplexity to form Airlink Select. That part is simple. The next part is a bit confusing. They’ll provide postpaid services, which is odd for an MVNO in America. Most are built on a prepaid platform. Get this, though. Airlink Select will be “available to all Simplexity customers regardless of credit history.” How can you operate a postpaid service without treating it like credit?

Coming soon: WiMAX MVNOs?

Earlier this week, Sprint announced the launch of XOHM WiMAX in Baltimore. This signals the debut of 4G networks in the U.S. This touches prepaid in two ways. First, according to the above-linked Mobile Broadband News, there won’t be contracts for WiMAX service, at least not yet. Chances are you’ll have to pass a credit check, but the lack of a contract still makes it attractive. Second, via RCR News, we learn that a company called Bridgewater Systems has developed an MVNO solution for WiMAX networks. So while Sprint might be the main carrier right now, we might start to see some other WiMAX companies pop up, even though they don’t have their own networks. Good to know.

Free MVNO Blyk brings in 200,000 users in one year

It wasn’t six months ago that Blyk, the free ad-based MVNO, announced that it had signed up 100,000 subscribers in its first six months of existence. They had actually projected that number for their first full year. We’ve about hit that point, and Blyk has announced they’ve signed up 200,000 customers by the beginning of September, effectively doubling their original projections.

Can a new MVNO survive in the current environment?

Last month at the Prepaid Press Expo, I met a company that planned to start a new MVNO. This puzzled me at first. In a time when MVNOs are either going dark or finding new arrangements, it seems strange to see new ones opening. It would take an entirely new strategy, an MVNO 2.0, for such a venture to work. After wishing the company good luck, I spent a good deal of time thinking about this. Here are some things I think would help a company intent on spreading as a virtual operator. There’s plenty to disagree with, so leave your thoughts in the comments.

Locus’s O2 service now available at Family Dollar

There are plenty of neglected children in our pay as you go cell phone providers list. That’s mainly because they don’t generate much news. Or if they do, it somehow escapes my daily searches (so send one in if you see it). Today, we uncover one of those providers, as O2, a service of Locus Telecommunications, has announced that their product will be available at over 6,500 Family Dollar stores across the country. Before I write another sentence, I want to be clear that this is not to be confused with the O2 wireless service over in the UK.

Paying tribute to the fallen MVNOs

We here at Prepaid Reviews have a love/hate relationship with MVNOs. We love them because they bring so many possibilities to the table. They might not be competition, per se, for the larger carriers, mostly because they feed off the big carrier networks. But they do present an alternative for cellular users. It’s too bad that so many of them were either ahead of their time, or couldn’t properly gauge the market. At Engadget Mobile, editor Ryan Block takes a walk down memory lane and talks about the dead soldiers. We’ll list ‘em after the jump, along with our library of information on them.

Disney Mobile not dead in Japan — not even close

In sports, it’s common to see a good player struggle and suggest that he or she needs a change of scenery to get back on track. Typically, we do not think of such a solution in the telecommunications sector, but one failed U.S. MVNO might change that. Disney Mobile, which went dark at the end of 2007, has found success with a new MVNO venture in Japan. They’ve partnered with SoftBank, a telecom conglomerate, and have each brought something different to the table. The result is a success unlike anything they saw in America. The craziest part: women in their 20s and 30s, and not children, are filling the bulk of orders.

Qwest customers either get Verizon or a lame duck carrier

Back in May, Qwest, the former MVNO of the Sprint network, ditched the oft-ridiculed carrier and hitched on with Verizon. Except the agreement wasn’t of a true MVNO nature. Instead, Qwest would become a Verizon reseller. What this meant, in essence, was that Qwest customers wouldn’t be Qwest customers for much longer. The company is now starting to port interested subscribers to Verizon accounts. Yes, they’ll waive the early termination fee — how very generous of them. If you don’t want to switch, though, you’re stuck with Qwest until your contract is up, or they cease operations.

Get ready for MVNO 2.0

We’ve done our best here at Prepaid Reviews to not proclaim the death of the MVNO. Many of them have fallen on tough times — and that includes some that are still in existence, not just those which bit the dust. Mark Lowenstein at Fierce Wireless makes us feel better about it. He’s penned an article about the next generation of MVNOs, and how they will differ from what we’re currently seeing.

Qualcomm backing new health-based US MVNO

We’ve seen the list of dead MVNOs. It’s not the stablest of endeavors right now, hence we haven’t seen many, if any, new entrants in the past year or so. It might be a different story, though, when Qualcomm enters the scene. The creators of CDMA technology will be backing a health care MVNO called LifeComm, according to Wireless Week. This will target baby boomers with healthcare software along with mobile phone services.

Ikea launching an MVNO…

…Just not in the U.S. And why would they? The MVNO market is beyond scary, with a few major players and a couple of little guys remaining. It’s thriving across the Atlantic, though, so the furniture super-chain will be open for business in the UK as of this past weekend. It will be available to Ikea’s loyalty program — or programme, as they say overseas — which covers 1.4 million people. It’ll cost GBP0.09 per minute and GBP0.06 per text message. Considering the conversion rate, this sounds a bit more expensive than prepaid rates in the U.S.

STi Mobile revamps plans

When we see changes in pay as you go phone plans, most of the time they’re small ones. This time, though, it’s a bit different. STi Mobile has overhauled their prepaid plans recently, and we get word of it via Ian. So let’s dig in and see what they’re offering.

MVNO Consumer Cellular signs content deal

Just because we don’t cover a certain MVNO on Prepaid Reviews doesn’t mean it doesn’t exist. Consumer Cellular, an MVNO of the AT&T network, has upped their multimedia offering. Previously, they were like many basic MVNOs, only offering basic services like calling and texting. However, they have struck a deal with ClearSky Mobile Media to provide their subscribers with premium content. This includes ringtones, games, wallpapers, and video clips.

Exposing some flaws in MVNO strategy

Eddie Hold is an analyst at Current Analysis. And apparently, he knows MVNOs, at least enough that RCR Wireless News interviewed him about it. Allie Winter has the piece, which is by all means a good read. Hold really nails it with some quotes, hitting on some serious flaws in the strategies employed by MVNOs. I’d like to go over a few of these points.

Free MVNO Blyk to expand to German, Spain, Belgium

It was barely two months ago that Blyk, the free ad-supported MVNO in the UK, announced its 100,000th customer. Now we learn that they will expand operations, opening up shop in Germany, Spain, and Belgium in 2009. The MVNO is still in talks with carriers from those countries, though they must be far enough along for the company to make the announcement. As we’ve noted every time this service comes up, when will we get something like this in the U.S.?

Supermarket MVNO catching on

We’ve talked at length here on Prepaid Reviews about how MVNOs in America just aren’t working. We’ve seen services like ESPN Mobile, Disney Mobile, Amp’d Mobile, and XE Mobile tank in recent memory. In addition, we’re seeing slowing growth from Virgin Mobile, and an inability to turn a profit from Helio. Yet there is a company making a splash while flying under the radar.

Free MVNO Blyk wants to spread its message

In the wake of it reaching 100,000 subscribers, Blyk, the free ad-based U.K. MVNO, has published a manual of how to do what they did. It’s an interesting concept for sure, and Blyk’s success is an encouraging development. It targets the right audience — teens, who might have trouble paying for a cell phone — and apparently reaches them in an appropriate manner.

Japan to encourage MVNO activity

Last week, we talked about MVNOs in America, and got some insightful responses. There’s a lot at play, to be certain. Japan now sees MVNOs as a potential competition booster. So they’ve instructed carriers to disclose their network leasing fees. This will allow potential MVNOs to decide whether it makes sense to enter the market.

Why aren’t MVNOs working in America?

Everyone really has a theory on this, so it’s tough to come to a solid conclusion. We know the effects: about a half dozen MVNOs have sunk in the past 18 months, and a number of others, including Virgin Mobile and Helio aren’t performing as well as they had hoped. Yet we see new MVNOs pop up around the world, and don’t hear the same stories of their failure. Why is this? How can MVNOs succeed in one environment, and not another? Once again, we might not be able to solidly conclude the answer, but we can take a look at what some people have to say on the issue.

Embarq is the latest MVNO to drop out

It always pains me to write about an MVNO dropping out of the game. I’m a firm believer that MVNOs can work, and the current environment isn’t helping my case. Rather than list the ones that have bitten the dust recently, I’ll just get to the newest one: Embarq. The spin-off of Sprint has announced that they will cease all sales after unloading their current inventory. So it’s not that they’re going dark. And, apparently, it looks like Embarq wasn’t bleeding money like other MVNOs.

Another grocery store MVNO

We keep hearing about grocery store MVNOs — namely Hy-Vee and H-E-B. And since I haven’t heard word of them shutting down, it appears that they may be onto something. Another one has reared its head: Meijer, a Midwest chain with 181 supercenters in Michigan, Ohio, Indiana, Illinois, and Kentucky.

MVNOs could spur mobile VoIP growth

iLocus conducted a survey of MVNOs to find out which ones were mulling mobile VoIP options. For those unfamiliar, VoIP — voice over Internet protocol — allows you to make voice calls over an Internet connection. While Skype is one of the most recognizable names in VoIP, many major cable companies, including Cablevision, Comcast, and Verizon, offer voice services which are a beefed up VoIP. So it turns out that nearly a quarter of MVNOs are offering or trialling mobile VoIP services, and over two thirds plan to have the service in place by 2010.

Qwest signs MVNO agreement with Verizon

I was just thinking the other day: What happened to the Qwest deal? The MVNO has been looking for a better carrier agreement since late February. We’ve heard that they talked to Verizon, as well as AT&T. They have ended up with the most sensible option, Verizon, in a five-year agreement which will begin this summer. The catch is that they might not really be an MVNO anymore.

Free UK cellphone service reaches 100K customers

Last year, UK-based MVNO Blyk announced that they would offer free cellphone service to people aged 16 to 24. At the time, I lamented how that wouldn’t fly in the U.S., though Google has brought up the notion of an ad-supported service of some sort. The only catch is that you get just 43 minutes per month, with 217 text messages to go along. Well, they just announced their 100,000th customer.

MVNO Movida stays afloat

We thought we were seeing the death of another MVNO earlier this month, as Movida, an Hispanic-market service, filed for Chapter 11 bankruptcy protection. At that point, as it usually is at the beginning of such proceedings, it was unclear whether Movida would emerge, or if it would collapse. It has emerged, as Maryland-based APC Wireless has agreed to buy the company.

Sonopia isn’t dead, it’s just hibernating

So it turns out that reports of MVNO Sonopia’s death have been greatly exaggerated. Well, maybe not greatly, but they certainly aren’t true, according to founder Juha Christensen. Instead, they’re just cutting nearly every cost in a hibernation-like move. Once the U.S. market warms up to MVNOs — which could be years — then Christensen will head back into business.

Apple had planned MVNO for iPhone

I really wish they had done this. If they had, I likely would be an iPhone user right now. In a recently-published patent filing, Apple reveals that the had planned to launch the iPhone on an MVNO. Their own MVNO, that is. Like Tracfone, it would have drawn service from all participating providers, allowing a greater level of coverage across the country. I’m not sure why this plan wasn’t executed. It could have been a number of reasons, ranging from pure financial to disdain from carriers. But it sounds like it would have been an efficient offering.

MVNO Sonopia closes business

With all of the MVNOs that have died recently, you’d think it’s an unsustainable business model. And maybe it is at this point. Another one has laid off its staff and closed its doors: Sonopia, a carrier which helped organizations open their own mini networks. The problem was the same as many of the other MVNOs we’ve seen shut down over the past year: Lack of subscribers. While niches can sometimes provide targeted and enthusiastic markets, it appears Sonopia was too niched.

Hispanic MVNO Movida files for bankruptcy

Weren’t we just talking about MVNOs? While Richard Branson thinks Virgin Mobile is strong, not all MVNOs can say the same. Movida, an Hispanic-market MVNO which launched in 2005, has filed for Chapter 11 bankruptcy protection. It’s largest debt is $15.9 million, owed to Sprint Nextel.

QWEST in talks with AT&T now

In what might be a move to increase their leverage, Qwest Wireless is in talks with AT&T to forge a new MVNO relationship. They currently have an agreement with Sprint, but are unhappy with the arrangement there. Sprint has its own problems, so going out of their way to broker a new deal with Qwest likely isn’t atop their priority list. So the MVNO is looking to take its 800,000-plus customers elsewhere. It was confirmed that Qwest held talks with Verizon. No resolution has been made yet, but CEO Ed Mueller says he’ll make a decision “soon”.

Qwest talking to Verizon

Yesterday, we found out that Qwest, an MVNO of the Sprint network, was looking for a better deal. Like other telecommunications companies, their landlines aren’t doing so well, and their broadband is facing competition from faster, more powerful entities. There were hints that they’d try to broker this deal with Sprint, since Sprint has a decent amount of subscriber from its MVNOs. But now they’re talking to Verizon about a possible deal.

MVNO Qwest looks to change carrier agreement

Qwest Wireless is one of those rare MVNOs that operates as a postpaid service. This puts them in a boat with, really, Helio and a scant few others. The general idea is that if people wanted to be locked into a contract, they’d opt for the services of the larger carriers. For Helio, postpaid makes sense because they differentiate themselves from the pack with excellent handset offerings. I’m not sure exactly what Qwest brings to the table, but it must be something, since it actually discontinued its prepaid service. In any regard, the MVNO is looking to break ties — or at least change the arrangement — with its current host, Sprint Nextel.

Luxury MVNO Voce disconnected

Voce wireless customers became distraught on Friday when they attempted to make phone calls. Their phones, um, didn’t work anymore. Though no formal announcement has been made, it appears that Voce, a luxury MVNO offering a “concierge” service, is down for the count. They join ESPN Mobile, Amp’d Mobile, Disney Mobile, and XE Mobile as MVNO casualties. They were formerly on the AT&T network.

Charting cell carrier relations

As you can see from our list of featured providers, there are quite a few providers you might not know of. For the most part, they’re either regional providers or Mobile Virtual Network Operators (MVNOs).