Are we seeing the end of MVNO (Mobile Virtual Network Operating) companies? Channel Partners Online believes so. In a recent article they shared why the collapse of Solavei and other companies are happening and will continue to leave the scene:
The MVNO scene in the United States is in the midst of a shakeup, according to reports.
And, frankly, the news doesn’t come as a big shock as the MVNO model – where companies lease network access from a larger wireless operator and then bill, usually without a contract, under their own brands – has come into question. That’s because providers including AT&T, Sprint and T-Mobile now offer their own bottom-dollar, no-contract services with the backing of more financial resources than their smaller rivals.
As a result, the following initiatives have come to an end: RadioShack’s Leap Wireless partnership; Spot Mobile’s and Solavei’s offerings, which ran on the T-Mobile network; and Chit Chat Holdings’ service, which relied on Sprint.
First, Fierce Wireless reported last week that RadioShack has put the kibosh on its no-contract product. The once-formidable retailer launched its prepaid service in 2012 but, contrary to most MVNO arrangements, had Leap provide the billing, not just the access.
That partnership came to end after AT&T earlier