Well, I read about this a few weeks ago, but didn’t get around to writing about it. Embarq has given up on the MVNO model for wireless cellular coverage. Unfortunately Embarq didn’t partner with the right company for MVNO access as the majority of their local landline service was delivered to rural areas. And Sprint Nextel, the carrier hosting Embarq’s MVNO on the CDMA spectrum, doesn’t have a strategy that lends itself to good coverage in rural areas.
To this folding of another MVNO I have to applaud. Embarq did very little to actually differentiate themselves in the MVNO marketplace, it was basically just a sales attempt to get people paying for local service to purchase their cellular services through the same company. But Embarq, like Mobile ESPN, was smart enough to see the problem quickly and leave the market before it became a drag on their finances. Information obtained from Rad-Info, Inc.
Also of interest is the ongoing talked between SK Telecom, owner of Helio, and Virgin Mobile. It appears that Virgin Mobile is set to acquire Helio’s customers and then destroy the Helio brand. I always liked the Helio devices as they were quite cutting edge but there did seem to be some confusion over what it was they were marketing.
At one point they were attempting to sell phones to the Korean American community, which isn’t a bad move as texting is pretty easy to pull off in Hangul and the Korean American community doesn’t seem to shy away from spending on technology. Although, it’s a limited community to sell to, so I wasn’t surprised when I later saw it being marketed as a high-tech mobile device, and certainly NOT A TELEPHONE! And they were using really sort of goofy marketing that I think was an attempt to get the young crowd to buy into the brand.
However in the long run, I just never saw any real people actually selling these devices, it seems like they never made it into Brick and Mortar stores. And I, like most customers, just won’t purchase a device without being able to put my grubby little paws on it. Info on the merger was taken from The Street.
Meanwhile Virgin Mobile is now offering $80/month unlimited calling. That’s a great rate, but unfortunately I don’t think that leaves them very much space to make a profit. However, with the financial problems of the world seeming to continue, perhaps pursuing customers that want service but don’t want another bill every month is a good strategy. Not to mention, you don’t have to get a credit check in order to start an account with Virgin Mobile.