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MVNO Model Can Be Made to Work, According to Pyramid Research

Cambridge, MA, August 9, 2007 – MVNO models can be made to work, and there are MVNOs with proven track records of success, according to a newly released study by Pyramid Research.

Despite market sentiment having swung sharply against MVNOs following a number of high-profile setbacks, Pyramid Research expects virtual operators to have close to 150m subscribers by 2012, for nearly $30bn in services revenue.

The failures of Mobile ESPN and Amp’d Mobile in the US and scores of others in Europe have raised some fresh questions about the viability of the MVNO business model. All these failures notwithstanding, Pyramid Research argues in its new report, Rethinking MVNO and MVNE Economics: the Future of Mobile Virtual Models, that it would be hasty to brand MVNOs a failure.

“The MVNO business has never been as good an opportunity as the initial hype would have had you believe, but is not as hopeless as the negative publicity of the past year would suggest,” said report author Guy Zibi. “We believe there is value in the model, in extending brand and content reach, tackling niche segments, and driving quadruple play. But it is an unforgiving model, and those that work are primarily success stories in cost-control.”

Pyramid Research’s new research study, Rethinking MVNO and MVNE Economics: the Future of Mobile Virtual Models, provides an extensive analysis of MVNO profitability and overall performance to date; the report deconstructs MVNO economics, provides insights into the MNO business case for hosting MVNOs, and reviews the MVNE model and its role in making the MVNO model work. For more information about this report, visit the Pyramid Research website at: http://www.pyramidresearch.com/store/RP-Rethinking-MVNO-and-MVNE-Economics.htm.

About Pyramid Research
Leaders of the digital revolution depend on Pyramid Research to develop winning strategies and dynamic business models in the converging global communications markets. We advise decision-makers in the operator, vendor, regulator, consulting, and financial service communities on how to anticipate market trends, attack new segments, respond to competitive threats, benchmark performance, and capitalize on opportunities.  For more information, visit www.pyramidresearch.com.

Press Contact:
Dianne Liu
Pyramid Research
Tel: (617) 494-1515 ext. 272
Email: dliu@pyr.com

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