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Sunday, September 30, 2007

The Dying Business Model - MVNO is withering away

The MVNO business model is going downhill.

The Mobile Virtual Network Operator business model is going very deeply into gutter - it seems.

What is an MVNO?

I think the major reason for this goeing down is extreme complexity that emerges due to multiple dependencies on the partners - the MVNO on its own does not own the Network, the infrastructure, the spectrum etc. This is the GIX Bang world where Innovation is behind the Complexity. The pace of complexity is much faster than the pace of innovation - hence the model is dying. If there can be an increase in pace of Innovation - to leapfrog the complexity - or those MVNOs who are able to reach the simplicity on the other side of complexity faster will be making MVNO a successful model.
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