Sonopia Is Latest MVNO to Fail
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THE DEATH OF THE MVNO
I am sure we will see more fall very soon, as these VC firms are starting to get nervous about the return on their money. I predicted ESPN and DISNEY, and I predict HELIO will be the next to go. This week we saw Movida take a nose dive, soon it might be TUYO, it just depends on the backbone of these companies, as it is obvious that folks like Virgin, Boost, etc are here to stay, but only time will tell.
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You just have to look at who is backing the MVNO to see if they fail. Tuyo is run by IDT Corp., which their calling card business has been confusing. Plus, what the hell does Mickey Mouse know about the wireless industry? Helio, on the other hand, has the backing of Earthlink and SK Telecom, South Korea's largest cell company, and at one point made a run to buy Sprint. Virgin is owned by Sprint and Virgin Group. Boost is a subsidiary of Sprint, and Tracfone is owned by America Movil, Mexico's largest cell company.
Bottom line is that these MVNO's are run by people who are in the wireless business. They are able to negociate better prices against the U.S. cell companies to use their towers.
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Helio has been around for almost 3 years now. You guys keep comparing Helio to other MVNO companies when you shouldn't. Rich Brome posted a response about this very subject a couple of months ago. He said that owners of Helio umderstand that since it is a new company it takes a lot of time and money and about 5 yrs before they will see profit. I have Helio service now and I love it. Helio offers feature rich stylish handsets and great plans that no other MVNO offers or offered.
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