Om has the storey on MVNO’s not making money, but the question is why not?. Two issues srping to mind, branding failure in a cut throat market, or too slim a margin between the underlying network costs and what the public is prepared to pay. Certain brands that own the assets can provide loss leaders as they own the network, MVNO’s can’t do this as nothing is free to them.
So the answer feirce branding, become the Armani of mobiles so that people will happily pay a premium for the product. MVNO’s as the articel says will struggle to survey in a bargain basement world. If Apple aver pulled it’s finger out, I’m sure you’ll agree it has the right business model tried and tested, underperforming fancy gadget, sorry I mean iPod anyone?
Technorati Tags: Apple, MVNO, Virgin