White Paper on How to Launch a MVNO
Big name companies such as mass-market retailers, sports television networks, youth-oriented content providers and ISPs that plan to lease wireless network capacity and create their own "virtual" cell phone companies are putting their brands on the line, according to a new white paper, "Your Brand, Unplugged: A Strategic and Structured Approach to Launching an MVNO," developed by DiamondCluster, a business and technology consulting firm.
While becoming a Mobile Virtual Network Operator (MVNO) can produce attractive economic returns and deepen relationships with customers, failure to develop and/or execute a successful strategy can be embarrassing and financially devastating.
"Launching an MVNO is much more complicated than a popularity contest," said Hamilton Sekino, a partner in DiamondCluster's telecom practice. "The number one reason why some MVNOs will fail will be because of poor launch planning and execution. It will take flawless execution to meet customer expectations.
"Even the strongest brand with the best strategy will fall short if a company can't deliver on its unique value proposition," Sekino added.
The risks are high, but so are the potential rewards, according to the white paper. While countries with comparable purchasing power such as Italy, the UK and Germany have reached 80-105% mobile penetration, the USA market is only at 65%. In addition, U.S. wireless carriers have yet to embrace personalization and customers are hungry for compelling content customized to meet their needs and match their interests. DiamondCluster estimates that there will be 30 million U.S. MVNO subscribers by 2010.
DiamondCluster's white paper, which can be obtained by sending an email to mvno@diamondcluster.com, contains a detailed prescription for aspiring MVNOs to mitigate risk and maximize success."
Posted to the site on 2nd August 2005