Priyank C.
Business Consultant- Strategy and Change at IBM Global Business Services
Finally...Virgin Mobile USA acquired by Sprint....Does that put a question mark on long term play for MVNO model?
One of most successful MVNO acquired by Sprint. Can MVNO business model be sustained for long term play...
http://money.cnn.com/2009/07/28/technology/sprint_virgin_mobile.reut/index.htm?postversion=2009072812
Good Answers (2)
Richard A.
Manager of Research and Development at Symstream
Best Answers in: Computers and Software (2), Computer Networking (2), Software Development (2), Facilities Management (1), Web Development (1)
I think the fact that Virgin was acquired shows that the business model works fine. If it wasn't working the story would have been about the failure of the operator.
In Australia Virgin Mobile is a VMO on Optus/Singtel. They were subsequently bought out by Optus but continue to operate. IMO the marketing strategies and product offerings have created sufficient brand differentiator to ensure the survival of the brand.
Links:
Innovation is the key here.MVNOs have to create value and differentiate their offerings with better VAS and tariff plans.With 3G around the corner in India,MVNOs have an opportunity to launch new services( tying up with content providers) and leverage on the increased bandwidth that 3G provides to subscribers
From a long term perspective-->MVNOs wont make it big if they continue dishing out plain voice with vanilla VAS offerings ,concentrating only on branding.
More Answers (3)
I believe it was more of a customerbase purchase rather than an inoperative MVNO model.
Well looks like Virgin is in an exiting mode from Telco to concentrate in their core business, we (Bell Canada) acquired them a couple of months back here....
Rajeev R.
Business Development & Solution Management at Nokia Siemens Networks
Best Answers in: Telecommunications (2), Wireless (1)
In the evolving communication ecosystem, service innovation is key to differentiation and this acquistion is in a way validation of this biz model. The survival of MVNO will depend upon the geography, demography, market situation and service innovation. When the market segmentation boundry blurrs and more than reasonable no. of players start playing in the market, it's obvious that consolidation is in the corner.
