New MVNOs finding themselves in a world of hurt
By Chris Ziegler 
posted Jun 22nd 2006 5:29PM
posted Jun 22nd 2006 5:29PM
It may not come as a shock to most of us, but the Wall Street Journal is reporting that recent MVNO start-ups Mobile ESPN and Amp'd are learning a hard lesson in market over-saturation, falling well short of the high expectations set for them by their parent companies and investors. Despite the hundreds of millions of dollars pumped into both operations -- well over $300 million between them -- neither had managed to muster even 10,000 subscribers through May. While Mobile ESPN is doubling back to retool its game plan (pun intended), Amp'd presses on, claiming they need more time to influence their young target demographic through advertising. Sports scores on hideous phones apparently don't get you as far as they used to, it seems.[Via MocoNews]
I think the problem with Mobile ESPN is that I can check my sports scores on T-Mobile, Sprint, Verizon, or any other cell phone company. Why would I bother switching?
A valid point. Mobile ESPN seems to market themselves toward the type of sports fan who already has a Blackberry or a Treo that can do the same stuff that the MVP can do, and more.
Amp'd mobile also seems to have forgotten that kids under 18 can't get cell phones and college kids have no credit/bad credit. Whoopsie!
AMPed just went prepay on Thursday (or started advertising it anyway). Looks like they've realized where their target market is, but too late?
Amp'd is actually an aming deal considering you can get Unlimited calling and Unlimited EVDO internet for $115 a month off of Verizon's network. People just dont relize that Ampd is basically Verizon with a pretty shell on. Only drawback to Ampd vz. Vzw really is the lack of roaming agreements.