Whoop! There It Is. Another New Mobile Phone Company

ems to me that you need billions of dollars and manySTi mobile utilizes their international calling card network
years to build a major infrastructure to provideto allow for cheap direct dial international calls from
nation-wide cellular service. Now new mobile phonetheir phones while using Sprint as a backbone. Boost
companies are appearing overnight. Companies likeMobile and Ampd Mobile are providing multi-media
Virgin Mobile, STi Mobile, Boost Mobile, Tracfone, anddownloads. ESPN Mobile and Disney mobile will provide
Net 10 have already claimed millions of subscribers.exclusive media capabilities as well. Helio, a joint
Right on their heels even more new companies likeventure between SK Telecom (Korea) and
Helio, Amp’d, ESPN Mobile, and Disney MobileEarthlink.net, will take its already successful Korean
are set to launch in 2006.muscle phones, muscle media, and muscle services
Welcome to the era of the Mobile Virtual Networkmodel from Korea and introduce it here in the United
Operator or MVNO. A MVNO buys airtime from aStates. I think these guys are very interesting.
major wireless provider and turns around and sells itsWhy are most of the major US mobile companies
own branded phones and services. They’vefinally welcoming MVNOs (because many did not in
been around in the United States for a few years,the past)? It is because much of the main stream plan
mostly as pre-paid companies. But now suddenly,subscriber base is saturated, but the growth
they’re hot.opportunities for MVNOs marketing in the prepaid
Virgin Mobile is the largest MVNO in the U.S., using themarkets, youth, and specialty areas is huge. The
Sprint network and targeting the hip youth market. OneYankee Group, a technology research firm, projects
of the reasons for the more recent larger scalethat mobile virtual network operators will generate $11
success is that US mobile carriers are now willing tobillion in service revenue by 2010, up from $1.9 billion last
accommodate MVNOs more aggressively.year.
Previously MVNOs just remarketed cellular servicesSprint has been the most aggressive MVNO service
under their own brand, but now a new wave of what Iprovider. Let’s hear it for Sprint. I hope they are
call Muscle-MNVOs are not only using the majorrewarded highly for their support of competition and
carriers network, but are providing new value add-ons.creativity in the Mobile Marketplace.