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Qwest shuttering wireless service, marking another failed MVNO

Qwest shuttering wireless service, marking another failed MVNO
Posted Tuesday, August 18, 2009 by Aaron Baker     
Views: 3012


Over the past few years, we've seen the MVNO model whirl into the wireless marketplace with mass popularity, only to exit the industry in an equally quick manner.  In a sign that the MVNO model may be failing, Qwest Wireless marks the latest company to announce a shutdown, effective on October 31, 2009.  A former partner with Sprint, Qwest migrated to Verizon Wireless a year ago, and currently offers Verizon products and services to Qwest customers.

With the date rapidly approaching, 60 day notice letters are being sent to customers, detailing their options.  Customers are eligible to port the number out before October 31st with no early termination fee.  According to a fact sheet distributed by Qwest, the company has been migrating subscribers to Verizon Wireless since August 2008, and has successfully migrated "tens of thousands of customers."

Qwest has set up a transitional website, which can be found here.

Source: TechCrunch


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Aaron Baker
Aaron Baker
With a six-year career spanning across several channels in the wireless telecommunications industry, Aaron Baker has a unique perspective of mobile technology and its relevance in today’s...

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Comments on this Article

Profile image icon for AndrewBlake
AndrewBlake @ Aug 21 3:10 PM
Quote:"In a sign that the MVNO model may be failing, Qwest Wireless marks the latest company to announce a shutdown"
I don't think it is a clear-cut as that. I use a Tracfone prepaid phone and I know they are a MVNO, yet they are the largest prepaid provider in the States. I think they are doing quite well, I must admit I don't know that much about their financial position but they seem to be quite competitive and have some great products and service available with no shortage of new deals and so on. I'm thinking Straight Talk to mention one.
Profile image icon for IsisSA
IsisSA @ Aug 19 2:08 AM
I think the lesson from the MVNO debacle is that the wireless business is complicated and competitive. MVNOs thought they could build a lucrative business by targeting specific niches with tailored service offerings but they underestimated the complexity of the wireless ecosystem. And they dismissed the incredible power that traditional operators have with their well-known brands, their intricate distribution channels and their marketing prowess. While MVNO's typically do not have their own infrastructure, some leading providers are actually deploying their own Mobile Switching Centers (MSC) and even Service Control Points (SCP) in some cases. Leading MVNO's deploy their own mobile IN infrastructure in order to facilitate the means to offer value-added services. In this way, MNVO's can treat incumbent infrastructure such as radio equipment as a commodity, while the MVNO offers its own advanced and differentiated services based on exploitation of their own intelligent network infrastructure. The goal of offering value-added services is to differentiate versus the incumbent mobile operator, allowing for customer acquisition and preventing the MVNO from needing to compete on the basis of price alone.

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