| An MVNO typically possesses access to and | | | | video clips to subscribers. Earthlink is launching a |
| name recognition in a specific market niche, which | | | | new MVNO service with Korea’s dominant |
| enables it to leverage its brand to drive diversified | | | | cell provider, SK Telecom. Unique among other |
| revenues, such as those from a wireless service. | | | | offerings, the Earthlink/SK Telecom joint venture |
| And, when looking at trends in the wireless | | | | is a postpaid high-tech offering seeking to |
| industry toward customization, it becomes clear | | | | compete against the major providers based on |
| why MVNO’s are well-positioned to drive | | | | early access to technology not offered by the |
| wireless growth. In short, MVNO’s are all | | | | major U.S. players. |
| about customization. Take for example the | | | | These companies, along with other potentially |
| best-known and one of the largest to date is | | | | successful MVNO’s, have more than simple |
| Virgin Mobile, which launched its youth-targeted | | | | brand recognition—their brands withstood the |
| prepaid service in July of 2002 and in only | | | | test of time. As with all modern offerings, |
| two-and-a-half years boasts 3 million users. Virgin | | | | convenience should not be overlooked. For |
| enables users to perform most standard data | | | | example, American Airlines customers could book |
| functions through VirginXtras, and even offers | | | | travel via their phones, use their phones for |
| some 3G capabilities to Virgin customers. | | | | automated check-ins and to check on flight |
| Demographic targeting is a trend MVNO’s | | | | status, and for mile-for-minutes (or vice versa) |
| and some recent entries have focused on. Take a | | | | rewards. Credit card companies could offer |
| staple of the prepaid calling card industry; the | | | | services incorporating pay-via-phone functionality |
| Hispanic market. Some 40 million Hispanics live in | | | | for retail purchases. Movie Theater chains could |
| the United States, and two cellular brands have | | | | offer automatic notices of movie schedules with |
| sprung up to better service this niche. Other | | | | one-click (or button) advanced ticket purchases. |
| major brands are poised to jump into the wireless | | | | The potential here is endless. |
| industry as MVNO’s. ESPN, for example, is | | | | Many of the services and benefits listed above |
| set to leverage its content to serve sports fans. | | | | can also be achieved via partnership, and it is |
| ESPN, like its competitor Fox Sports, already | | | | reasonable to expect that many brands will seek |
| offers certain services to users of all major | | | | relationships with major wireless providers for |
| wireless carriers, but the ESPN MVNO will leverage | | | | customized packages that deliver commissions (or |
| the brand’s strength to sell top-to-bottom | | | | other forms of added revenues from the |
| cellular service to committed sports fans, by | | | | relationships) without the need to operate their |
| offering scores, live game updates, and select | | | | own wireless telephone operations. |