Tuesday, April 8th 2008 -- In an attempt to create a new feel for Cellubration i've decided to take on more of a blog approach to our stories, and to start that new trend I want to take a moment and talk about Sonopia. For those of you not familiar with the company, Sonopia launched about a year ago, another MVNO out to make a quick buck by offering cheap pay as you go wireless minutes.
Sonopia did have a different business approach than many MVNO's, their offerings allowed companies and individuals the opportunity to start their own "mini networks" and share in the profits of the network, an approach they hopes would help attract users of a niche market.
The modest of Sonopia's executives did shine through as they stated "The idea simply did not work."
Does it really come as a surprise that the idea failed. MVNO providers have proven time and time again that the current business model does not work. I have great respect for their attempts, but its a fact, the original MVNO I worked for was DBS Communications, a company that recently laid off half of their work force. The difference between DBS and many larger MVNO's has been their modesty in advancement, they have always moved at a respectable pace. But even a cautious approach doesn't guarantee success in the volatile Cellular market, the simple fact is, even highly respected, and critically acclaimed MVNO's have closed after high operating expenses and shrinking profits, such as Disney Mobile, which surprised many people in the industry when they closed their doors.
I do want to applaud the executives at Sonopia for their ability to move their customers to other networks, a move that was ignored by ignorant MVNO officers at Amp'd Mobile when they closed their doors.
Personally I would like to see an officer of the mobile industry come forward and develop a new model for MVNO's that allow for more practical operating infrastructures. Until then, I'll fill you in as more MVNO's continue to close their doors, hopefully they take a que from Sonopia and help their customers find a new comfortable home, for that I truly applaud them.
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