MVNO’s are struggling

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Tuesday, June 20, 2006 by T.O. Whenham

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There is an MVNO out there for every interest and every type of service. The problem is that most of them are struggling to get customers. There are success stories, of course, or we wouldn’t see a new one launched every day. Companies like Virgin Mobile, Boost Mobile and TracFone have managed to resell cellular minutes successfully.

Some high profile and well funded recent attempts have bombed, though. Amp’d Mobile launched with a splash with fancy phones and content partners that were impressive, but no one seems to care. They started with $250 million in funding, but have yet to pass the 10,000 subscriber mark. That’s obviously a long way from profitable. ESPN Mobile is another effort which hasn’t scored. It was launched during the Superbowl and is advertised heavily on their TV and radio stations and website, yet they too have been unable to secure 10,000 subscribers. They have apparently gone back to the drawing board to find another way to make the offering work.

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