Apple and Amazon have started a new category in the MVNO market place. They are fundamentally so different from the current MVNO players that maybe we should start talking about MVNO 2.0 now.
The definition of a MVNO is " A company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum". The last I know, Apple does provide mobile services and does not have its own licensed spectrum. The question is why does this apply to Apple and not say LG which also provides phones on networks like Verizon?
The answer lies in the brand. Apple has kept a strong brand with the iPhone. It is stronger than any other manufacturer on any other network except for the Blackberry. Already people are discussing what would happen with the iPhone after the Apple and AT&T deal expires. I am yet to hear these discussions for any other phone.
Amazon too has entered this market. Kindle (the Amazon e-Reader) uses the Sprint infrastructure to connect to the Internet and download new books. The brand here is Amazon all the way. I had to do a google to figure out which network they are using.
While older MVNOs like Cricket, ESPN mobile continue to face difficulties, the advent of the new brand of MVNOs is on the way.
Prediction: You will see more established and nimble brands enter this space. I don't think the day is far when Google, eBay would come up with mobile services using infrastructure from established carriers. The carriers will go further and further away from the consumer and move closer to becoming the "dreaded data pipe".
In my opinion it is a welcome move. Leave the consumer facing applications to the geniuses in companies like Google, Apple, Amazon, Microsoft etc. Leave them to the startups coming up over the world who are passionate about consumer behaviors and know how to build applications that are a pleasure to use. The carriers should instead focus on their core expertise and improve the infrastructure available for these applications.
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