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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?
CEO says Sonopia isn't dead, it's just playing possum
Apparently, laying off every single one of your employees at your US headquarters doesn't imply you're going out of business. Sonopia, the MVNO that allowed customers to roll their own mini-MVNOs, recently imploded -- but it turns out the company's still there, having maintained its customer base by purchasing minutes through a third-party wholesaler rather than from carriers directly. The remaining operations have retreated to Ukraine, where roughly half of its once 60-strong development staff remains; the CEO says that he's waiting for Americans to warm up to MVNOs to make his triumphant return, and in the meantime, the company is exploring European ventures. For what it's worth, he says they're not pursuing any additional venture capital beyond the $20 million they've raised already, though it's not clear whether that's because he doesn't feel they need any or because they don't stand a prayer of landing funding. On an interesting side node, he also chimed in on the state of other MVNOs currently trying to make a dent in the US market; he thinks value is where it's at, which is what seems to be making TracFone and Virgin Mobile so successful. On the other hand, he thinks Helio already had its chance to be successful; if it was going to be profitable, it'd be there by now, and at this point it's just a matter of how long its corporate parents are willing to cut it an allowance. Then again, do we really trust the opinion of a dude whose MVNO just failed?
Roll your own MVNO somewhere else: Sonopia calls it quits
Given that MVNOs have been dropping like flies for the past couple years and the fact that the whole business model is being called into question, it stands to reason that a company whose strategy revolves around allowing groups to create their own MVNOs would be on thin ice. Sure enough, the start-up shuttered its US operations in March, laid off all of its employees, transitioned subscribers to its partners, and has "practically ceased operations." At least they were kind enough to see to it that customers were shuttled off to more financially sound carriers before shutting off the switch, but sadly, it looks like that Engadget-branded carrier we've all been yearning to set up is going to have to wait just a little bit longer.[Via mocoNews]
Create your very own MVNO with Sonopia
It seems we're a little closer to creating an Engadget Mobile wireless service than we thought! Start-up Sonopia offers... well, pretty much anyone the ability to roll their own MVNO, pushing a selection of handsets and customized content on top of Verizon's network. Big Red offers up the minutes at a wholesale price, so your MVNO's service plans aren't outrageously priced, and as your list of subscribers grows, you get to pocket a little cash out of the deal. It seems like a major win for groups that stand to benefit from being able to offer up phones and services customized to their customers' common ties -- and, of course, Sonopia and Verizon are going to have their hands in the pot, too. The company's website makes setup virtually effortless, so go on and make the next Amp'd, will ya?[Via GigaOM]
