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A stroll through the MVNO graveyard
Back in the early days of Engadget, everyone -- including us -- thought mobile virtual network operators (MVNOs) were totally poised to be the next big thing. And why not? You get to be a wireless carrier without having to operate your own infrastructure (which is by far the most expensive, difficult part). Just what the doctor ordered for the big, stodgy wireless carriers, each struggling to balance differentiating themselves while trapping their customers in their walled content and services gardens.What we got instead was failed business model after spectacular failed business model, leading to a domino effect of collapses that left just a precious few companies standing. Let's take a look at the carnage over on Engadget Mobile, shall we?
XE Mobile, R.I.P.: another MVNO goes to the cell tower in the sky
MVNOs left and right are discovering that it takes way more than a round or two of venture capital and a dream to be successful; Amp'd is probably the most spectacular and well-publicized of the falls from grace, but they're certainly not the only example. Latest to fall victim to the virtual network backlash is XE Mobile, a service focused on college students that offered pay-as-you-go service and a host of crappy phones atop AT&T's network. We're not sure how many customers are left scrambling for an alternative here before the network goes dark on December 31, but seeing how the company's death was nearly as silent as its birth, we're guessing it's not terribly many -- which explains the shutdown, we guess, and the circle of life begins anew.[Via Phone Scoop]
