Saturday, February 9, 2008

Launch your own cellular brand in 15 minutes

Working with what is new in Digital Communication, is really interesting news. The mobile communication industry has been transforming over the last 10 years from a pure technology driven business to a retail, distribution, and branding based business. Somehow the North Americans has been a slower on this, and has frequently over the last ten or so year being injecting new technologies into the market place, giving little importance to the retail model and to scale the business: TDMA, CDMA, EvDO, EvDV, Canopy, WiMax, etc...
The European mobile market has focused more on shaping up the retail business model: Mobile Virtual Network Operator (MVNO), Service Providers, and Branded Resellers. In Europe the Discount wave in Mobile Telephony started with around 2001, and spread around in Northern Europe initially, and is now moving into micro-segmentation and value added niche play. Operators need a competitive voice offering in order to compete on value added service. There are today many MVNO or Service Providers in the US. Trackfone and Virgin being the more retail based. Big flagships in the US like Disney and ESPN did not pay much attention to shaping the customer acquisition cost and subsidies to the business, and then the business model does not add up, even if you have attractive content, and they have withdrawn from the market now.
This time the Americans have chosen to use technology to create a new business model. Combining the Internet and easy-to-use site builder tools, on, you can create your own mobile operator in 15 minutes. You can build your own brand for you school, shop, football team, or whatever. Now, this is micro-segmentation! All the traffic is concentrated to the Verizon host network. Verizon has been driving good traffic growth on their network through different distribution channels for some time now, a pretty smart move.
Article 1
Article 2

No comments: