yo yo yo. i recently got home from college and just starting playing paintball again so i decided to clean my room and put all my extra stuff up here. *lanyards $3 A PIECE* Orange HD radio Black Dub Magazine Green Cabela's Yellow Pirelli Baby Blue Amp'd Mobile Black Best Buy Black Energizer x2...

Remember, in 2007, when the MVNO died? In a series of high-profile flops, Disney Mobile met its untimely end just a few months after Amp'd Mobile went under. Those followed the demise of Mobile ESPN the year before.

Yet the mobile virtual network operator model--or at least its spirit--is definitely not dead. In today's iteration, the MVNO is more similar to what was originally known as the wireless reseller--firms that bought buckets of airtime from carriers and resold them to customers. While the high-profile MVNOs of yesterday such as Disney Mobile and Mobile ESPN tried to market wireless services to high-ARPU customers using their well-known brand as a draw, the reseller primarily focused on selling wireless services to underserved markets.  

Today dozens of wireless MVNOs continue to crowd the market. According to the FCC, the number of MVNOs in the United States actually doubled during the past several years. In the agency's 14th annual Mobile Wireless Competition Report, there were at least 60 U.S. MVNOs operating in the first quarter of 2010, up from the two dozen it counted in its 11th report, released in Sept. 2006.

The FCC defines MVNOs as companies that purchase airtime from facilities-based providers and then resell that service to the public for profit. (However, CTIA spokeswoman Amy Storey noted that while the FCC counts 60 MVNOs in operation in the United States, the trade association's research department only found around 45 to be active.)

Further, there are even inklings that the MVNO model is shifting away from voice to a more data-centric experience. However, analysts--and even representatives of the MVNOs themselves--cautioned that traditional MVNOs will not be able to make the data model work overnight.  

Still surviving

"They still exist because they go to micro-niche audiences," said William Ho, an analyst at Current Analysis. "They don't have huge market share, but they serve a certain need." The big MVNOs that flopped, he said, went after high-ARPU users and tried to extend a major brand into the wireless market.

"The smaller guys are still working because they have favorable wholesale agreements and work in a small, niche market," Ho added.

While the industry is littered with the remains of fallen MVNO giants, there are still many in operation, including TracFone's Net 10, Jitterbug, Firefly Communications, Page Plus Cellular and others.

Omar Abhari is the senior vice president of operations at PlatinumTel, one of the MVNOs that has survived. The company, which has been around since 2001 and operates on Sprint Nextel's (NYSE:S) CDMA network, has stuck around for several reasons, Abhari said. For one, the company developed its own software suite for OSS/BSS operations. Additionally, Abhari said, PlatinumTel worked to make sure its retail operatives were being compensated well, its carrier partner was getting paid on time and that it was making enough money to operate its business.

The MVNO flops, he said, "couldn't manage that equation very well. They got caught owing the carrier a good portion of money."

PlatinumTel, like many MVNOs, does not provide its subscriber numbers. However, Abhari said that since it added a $50 unlimited voice and texting plan to its pay-per-minute and hybrid plans in September, the company has seen its subscriber base double. The company sells its products in more than 1,200 independent retail stores across the country.

Another MVNO that's still churning along is kajeet, the brand focused on the tween market. Daniel Neal, kajeet's CEO, said the company has survived because it focused on prepaid and addressed an underserved niche.

When kajeet launched in 2007 it was the only contract-free wireless service with parental controls and GPS phone location. Since launching the company has transitioned from a retail model to a direct Web marketing operation. The move hasn't been all bad, Neal said, noting that the company has doubled its subscriber acquisition efficiency in the past year.

Kajeet does not give out subscriber numbers. "We've seen growth in the types of subscribers we're really seeking to acquire," Neal said. "Where we've focused we've seen really good growth."

TracFone gains traction

The biggest outlier in the MVNO market though is TracFone, which is a subsidiary of telecoms giant America Movil. Although Tracfone operates different brands, including Net10 and Straight Talk, Tracfone is primarily one brand and continues to be successful, said BTIG analyst Walter Piecyk said.

TracFone has deep roots in the MVNO market, and has seen its subscriber base explode. According to the FCC, TracFone had 6.1 million subscribers at the end of 2005 and 14.4 million at the end of 2009. The company benefits from America Movil's scale, Piecyk said, noting that TracFone has a lower cost-per-gross-add than most MVNOs, and that TracFone's parent company buys more phones than Verizon Wireless (NYSE:VZ).

However, much of TracFone's recent momentum in the MVNO market comes from its Straight Talk prepaid unlimited service, which it sells through Wal-Mart. The company began offering the service on Verizon's network last fall. Recently, the company expanded Straight Talk with GSM phones from AT&T Mobility (NYSE:T) and T-Mobile USA's networks.

When TracFone launched Straight Talk, "a lot of people looked down on it," Piecyk said. "It was new. Why would Verizon enable a competitor? Now, a year later, you've got other operators jumping on that bandwagon."    

A TracFone spokesman, Derek Hewitt, did not respond to a request for comment on the company's operations. Verizon added 896,000 wholesale customers (out 1.4 million total net adds) during the second quarter, and around 460,000 of those came from Straight Talk, according to Ho. (The TracFone numbers comes from America Movil's quarterly report, and Ho said that, because they don't show loss, it's unclear if there were more Straight Talk gains.)

Interestingly, though, competition in the unlimited, prepaid space highlighted by Straight Talk appears set to get even more intense as the big guys move into areas once the sole domain of MVNOs. Verizon last month began testing a $50 prepaid monthly unlimited plan across the Southeast. Last year Sprint purchased Virgin Mobile USA--one of its own MVNOs--and has made it one of its prepaid brands. Sprint also has been pushing Assurance Wireless, a prepaid brand focused on low-income subscribers. T-Mobile USA too offers a $50 unlimited talk and text service.

"It becomes more competitive for a smaller MVNO that thought they were attacking a niche to be competitive and relevant in that market," Piecyk said.

Next stop: data and smartphones 

While competition continues to remain heated on the voice side of things, it appears the next frontier in the MVNO game centers on data.

For example, Best Buy recently inked deals with Sprint and Clearwire (NASDAQ:CLWR) to provide 3G and mobile WIMAX service, respectively, through its Best Buy Connect Service. Additionally, Leap Wireless (NASDAQ:LEAP) last week inked a five-year, $300 million 3G data roaming deal with Sprint, effectively becoming an MVNO. And LightSquared is in discussions with more than 30 companies--including wireline operators, cable operators, rural carriers, retailers and device makers--for its wholesale LTE network, discussions that could result in the creation of new MVNOs.

However, analysts cautioned not to read too much into the recent developments. Ho said the Best Buy deals represent an attempt by the retailer to increase the stickiness of its brand, and attempts by Sprint and Clearwire to add additional customers onto under-used networks.

"We don't see AT&T and Verizon doing that," he noted.

"To establish an MVNO model for data is very difficult," Piecyk said. "I don't think you're going to see an unlimited data plan for an MVNO."

Indeed, MVNO Zer01 famously flamed out after promising an unlimited voice and data plan.

Piecyk said he doesn't think AT&T and Verizon--which are working to expand their data revenues while limiting network congestion--will want to extend data services to MVNOs.  

Nonetheless, MVNOs across the board are looking to data-capable smartphones as a way to expand their businesses. Abhari said PlatinumTel will launch its first smartphone, the Kyocera Zio Android phone, in the fourth quarter of this year. He expects customers who prefer prepaid plans will be willing to pay larger up-front costs for the device.

However, Abhari said he believes the traditional, voice-centric MVNO model still has a lot of room to grow. "I think the two can coexist," he said. "We have plans to be data-centric and get in step with the times, but we're taking steps to get there as the market evolves."

Neal sounded a similar theme, and said kajeet will introduce its first smartphone next quarter. "Clearly there is that trend," he said.

Ho said the MVNO market likely will transition from voice to data at some point, but such a move won't happen quickly or smoothly. "Unless you have deep pockets, you won't see a lot of data MVNOs because it's a competitive issue right now," he said.

yo yo yo. i recently got home from college and just starting playing paintball again so i decided to clean my room and put all my extra stuff up here. *lanyards $3 A PIECE* Orange HD radio Black Dub Magazine Green Cabela's Yellow Pirelli Baby Blue Amp'd Mobile Black Best Buy Black Energizer x2...

When we first heard about Zer01 it was set to launch at a time when other MVNOs were disappearing. (Remember Amp'd Mobile, or Helio?) Zer01 was pledging unlimited voice and data for just $69.99 a month, before most other carriers had their $99 plans, but ultimately never delivered a thing. Apparently Global Verge was similarly left in the dark, but unlike the rest of us it had invested $170,000 in Zer01 in exchange for selling wireless services as part of its multi-level marketing company. Global Verge had been allowing its "e-associates" (people who pay for the right to hawk Global Verge's wares) to shill for Zer01 wireless, which of course never delivered a single call. There are accusations flying fast and frantic about which of the two companies is the worst offender here, but the District Court in Clark County, Nevada at least believes that it's Zer01 reneging on its promises, awarding $43 million to Global Verge for breach of contract and various other legal wrongdoings. Congrats, GV, and good luck collecting.

Global Verge wins $43 million lawsuit against mystery MVNO Zer01 originally appeared on Engadget on Wed, 26 May 2010 08:18:00 EDT. Please see our terms for use of feeds.

Permalink   |  ComputerWorld  | Email this | Comments

yo yo yo. i recently got home from college and just starting playing paintball again so i decided to clean my room and put all my extra stuff up here. *lanyards $3 A PIECE* Orange HD radio Black Dub Magazine Green Cabela's Yellow Pirelli Baby Blue Amp'd Mobile Black Best Buy Black Energizer x2...

Simple Mobile, a fledgling MVNO that has been operating since November, refreshed its unlimited plans, and said it is taking slow but steady steps toward growth.

The MVNO laid out three new pay-as-you-go plans: $40 for unlimited voice and texting; $50 for unlimited voice and texting and 50 MB of data use; and $60 for unlimited voice, texting, 150 MB of data and national 3G coverage. The offerings align relatively closely with the services from competing flat-rate players like TracFone, Boost Mobile, Leap Wireless and MetroPCS.

Simple Mobile, which runs on a bring-your-own-phone model, rents out a national GSM network for its service. In an interview with FierceWireless, Richard Wong, Simple Mobile's vice president of strategic alliances, did not say which carrier the MVNO is working with, but pointedly said it is not AT&T Mobility. "So most people can go ahead and do the math," he said, apparently confirming T-Mobile USA as the MVNO's network provider. (T-Mobile is the only other national GSM carrier; Verizon Wireless and Sprint Nextel operate CDMA networks.) A T-Mobile spokeswoman did not immediately respond to a request for comment.

Under Simple Mobile's business model, customers can add the MVNO's service to any unlocked GSM phone, of which there are hundreds for sale via manufacturers, retailers and Internet sites. Customers can call Simple Mobile's customer care--which the firm outsources--to get help activating their service. Customers also can have their existing number ported over to the service as well, Wong said.

Simple Mobile supports supports more than 180 different handsets. One of the big differences between Simple Mobile and other, failed MVNOs, Wong said, is that the company does not subsidize handsets and is not involved in handset logistics. "Our cost structure is markedly different because of that one factor alone," he said.

Wong said the company is privately held, but declined to be more specific about the firm's management or funding sources. He said Simple Mobile would exhibit at the CTIA Wireless trade show in Las Vegas in March, and said he hoped to be able to reveal more details then. Wong said the company, which is based in Irvine, Calif., has around 15 full-time employees, many of whom have years of experience at Sprint Nextel, Boost Mobile, and MVNO Amp'd Mobile (which folded in 2007).

Wong did not say how many customers Simple Mobile has signed up, but noted: "We're doing better substantially better than Helio or Amp'd ever did--much sooner, much faster."

For more:
- see this release

Related Articles:
Rumor Mill: DoCoMo planning MVNO in U.S. market
Grocery chain offers free wireless minutes

For motorsports fans, one of the ultimate in spectator viewing is the supercross in a stadium setting. And the Monster Energy AMA Supercross tour makes its annual stop at Qualcomm Stadium, Saturday, Feb. 6. See the spectacular jumps and riding by these motocross warriors in a winding, dirt filled track. Supercross superstars James Stewart and Chad Reed won't be racing because of hand injuries, so the race is wide open. Up-and-coming riders Ryan Dungey and Ryan Villopoto heads the lineup of racers vying for the San Diego title. Main event starts at 7 p.m. Doors open/practice & qualifying is at 12:30 p.m. Tickets are as low as $10.

For information about the Amp'd Mobile Supercross at Qualcomm Stadium visit the official website.

Monster Energy AMA Supercross Flies into Qualcomm Stadium, Feb. 6 originally appeared on About.com San Diego on Friday, February 5th, 2010 at 01:00:54.

Permalink | Comment | Email this

Los Angeles-based Bccthis, a startup developing software which connects Microsoft Outlook, Twitter, and BlackBerry smart phones, announced this morning that it has raised $500,000 in seed funding and launched a beta of its service. Source of the seed funding was not disclosed. According to the firm, it has created a service which allows users to use either Microsoft Outlook or Twitter to send secure private messages to recipients, along with their original emails or tweets. The firm said it will add BlackBerry support later this month. The firm was founded by Dave Waldman and Michael Steuer. Waldman was most recently at Twistbox Entertainment, and also had served at Amp'd Mobile and Eyematic. Steuer also has served at Twistbox, as well as THQ, MINICK, and Distefora.

We had the chance to meet Steve Burns when he came to the North American International Auto Show in Detroit earlier this month. Steve Burns is the CEO of AMP Electric Vehicles, a Cincinnati, OH-based company that is creating electric vehicles without building cars themselves. AMP believes in electrifying vehicles, but doesn't think you have to build an entirely new car in order to to do it.  Instead, they are converting a stock Saturn Sky to run on electric power by removing the internal combustion engine and gas tank, and putting in batteries and direct drive electric motors, and entering it in the XPrize competition to be run later this year.

Steve has founded a number of companies over the past decade, most recently iTookThisOnMyPhone.com, a mobile photo and video-sharing technology company, as well as now serving as CEO of AMP.

We asked Steve Burns to be our EcoGeek of the Week and to tell us more about the AMP approach to building electric vehicles.

EG: How did you get started with electric cars in the first place?

SB: I have wanted to build an electric car since college (30 years ago). About 3 years ago, it seemed like the core technologies were in place to give it a shot. Batteries, motor technologies, control/power electronics and CAN bus integration in most modern vehicles. So, we founded the company 3 years ago. I was just an investor for the first two years and then about a year ago, I joined the company as CEO.

EG: How large of a company is AMP? How many vehicles have you converted to date, and how many do you expect to convert this year?

SB: AMP is now about 25 people. After three years in a development lab, this month we moved into our showroom and production facility and have starting converting the first customer vehicle. First customer vehicle will be delivered this month. Our goal is to convert 1000 vehicles this year.

EG: You started out selling your cars only within a 150 mile radius of your headquarters in Cincinnati, but you are now distributing more widely. Are AMP cars available nationwide? How are you handling sales and distribution at this point? Are there any plans for international sales?

SB: Yes, we are trying to limit our initial sales to the greater Cincinnati area. Because we currently have only one sales/service center, we want our early customers to be physically close. The thought process behind this decision is that we can work very closely with our early customer to make sure their experience is a pleasant one. However, some our our potential customers won't take "no" for an answer, and so a percentage of our intial vehciels will to to customers outside the greater Cincinnati area. In short order, we do plan on selling conversions in other areas of the U.S.

EG: Can you give us some statistics for an AMP conversion Sky?

SB: The AMP'd Sky has 150 miles of range, top speed of 90mph and 0-60mph in about 8 seconds. Battery pack is 37kwh.

EG This came from EcoGeek reader darius: What about the range on the existing batteries? How was the heating handled? After all you were in a very cold weather.

SB: Most companies that are planning on introducing EV's in the near future are planning on using some form of Lithium cells. Different Lithium chemistries have different characteristics. Like everything in life, there are always tradeoffs. For example the most energy dense chemistries also tend to be the most dangerous. With our chemistry choice, we have tried to strike a balance between safety, range, life cycle and cold weather capabilities. With an emphasis on Safety. Our range goal is 150 miles on a charge. However, in very cold weather (below -20 C), our control software restricts acceleration and top speed until such time that the cells begin to warm up. Even with these advanced control algorithms, we do think it is safe to say that in sub zero weather, the range will not be the full 150 miles.

As for cabin heat, we utilize the heat generated from our motors and power electronics. However, because these systems are so efficient and thereby do not produce a lot of heat during normal driving, we are planning on having an auxilary, small electric heater in our vehicles.

EG: Your XPrize vehicle is based on the Saturn Sky, but GM has closed Saturn, so that source of vehicles for conversion is closed. (The Pontiac Solstice was a similar car, but GM has ended the Pontiac line, too.) How does this affect your entry and the longer term outlook for AMP?

SB: Although the Saturn Sky and Pontiac Solstice are no longer in production, there are still over 100,000 of them on the road. We have enough advanced orders from people with used SKY's and Solstices that we have begun production. We are about to announce a 2010 Crossover conversion in Feb. Our goal is to have approx 10 different models that are available to be AMP'd over the next two years. However, our XPrize racer remains a converted SKY.

EG: During our test drive in Detroit, you told me that you retain many of the original systems, such as the brakes, in the vehicle. Does the AMP conversion do regenerative braking?

SB: Yes, we do have regenerative braking. It works in conjuction with the hydraulic braking system. We do not modify the factory hydraulic braking system, only add some asssited braking via regenerative braking from the motors.

EG: What do the manufacturers think about what you are doing?

SB: We have done our Saturn and Pontiac conversions without the help of their OEM. However, it is natural to think that at some point we may work with the OEM of some or all of our conversion vehicles. But at this time, most of the OEM's are trying to figure out their own EV strategy. However, we have secured parts deals with some Tier 1 automotive suppliers. This is a very big step for us. Usually, the Tier 1 suppliers don't work with smaller players like us.

EG: How are service and warranty issues handled for your vehicles?

SB: Our conversions may void some or all of the manufacturer's original warranty. We however will warrant the drivetrain for 3 years or 36,000 miles.

EG: How is your approach to building electric vehicles the best way to win the XPrize competition?

SB: Our mission to get Americans driving electric miles began well before the XPrize. While I can't say that electric propulsion is the best mechanism to win the XPrize (only time will tell), I can say that we feel it is the best way for America to begin to move away from oil.

EG: What are the biggest hurdles to overcome in the XPrize competition?

SB: For us, the great thing about the XPrize is that they have never requested anything of us that we don't already have or plan to have. The toughest thing for us to date has been complying with the paperwork required to get through the various stages. It is good discipline for us, but it does distract a bit from our core business of producing vehicles for customers.

EG: What would it mean if AMP won the X Prize?

SB: If AMP wins the XPrize:

a) Naturally, the cash would be nice.

b) But the main benefit of winning the XPrize would be the validation that AMP engineering is solid and that our premise of converting best of breed modern vehicles is a great way to bring change to an industry that has been based on one theme (oil) for 100 years.

EG: What do you think will be the outcome of the X Prize competition overall? Do you think this going to improve the awareness of electric cars or have other benefits?

SB: The XPrize consists of many different propulsion systems. I think that if a pure EV wins the race, it will be a significant step toward changing the general population's attitude toward EV's.

EG: You are working with existing pieces to put these vehicles together. Does a different assembly approach, like having distributed assembly facilities scattered over the country, make more sense than the traditional concentrated assembly line?

SB: We are considering both the traditional approach to automotive manufacturing (one big factory builds the vehicles and then shipping them to dealers/customers) as well as a micro brewery approach (many smaller shops across the country to perform conversions and service the customers afterward). We are still evaluating the best method to roll our plan across the U.S.

EG: Your approach treats cars as a commodity item rather than a closed system. It seems reminiscent of the early PCs, where consumers could start to exchange parts inside their computers, and a range of possibilities opened up, rather than computers being a fixed device. Does the electrification of vehicles - particularly the way you are approaching it - mean that cars might start to become more open systems that can have different pieces installed and swapped in and out?

SB: I like your PC analogy. We are building our vehicles as openly as possible so that as technology advances, we can upgrade individual pieces over time as users request. At this time, I don't think the standards are there such that end users will be able to do these upgrades themselves, but overtime that may happen.

*FOR SALE :Apple iPhone 3gs 32Gb (Black and White) Unlocked . Item Specifics - Cell Phones & Smartphones Carrier: Alltel, Amp'd Mobile, AT&T;, Cingular, Bell Mobility, Boost Mobile, Cellular One, Cellular South, Cricket, Disney, Fido, Helio, Metro PCS, Net10, nTelos, Qwest, Rogers Wireless,...