Wireless Service Providers

Providing access services to end-users similar to those offered by network operators are wireless service providers. Wireless service providers focus exclusively on servicing the wireless community, while the previously discussed network operators have their roots in traditional voice communication. There are a few wireless service providers that build and maintain their own proprietary networks, but most purchase excess capacity from the big network operators and resell the service under their own brand. For example, the now defunct Ricochet service by Metricom was a proprietary high-speed data network that offered wireless connectivity for PDAs throughout select major U.S. cities. On the other hand, Virgin Mobile, the UK-based wireless service provider and part of the Virgin Group, is an example for a Mobile Virtual Network Operator (MVNO). Currently on an expansion path within the U.S., Virgin Mobile has formed an alliance with Sprint from which it obtains excess capacity. Virgin Mobile brands the service using the Virgin trademark, and applies the Virgin Group’s strong branding and superior marketing expertise to sell the offering to the youthful community that the company has established close ties with through its worldwide music empire. In addition to Metricom and Virgin Mobile, other companies currently operating within the United States include GoAmerica, Earthlink, Motient, and Palm.net—all offering the wireless data service that connects PDAs to the Internet.

Wireless service providers face strategic challenges similar to those of the previously discussed network operators when it comes to gaining a differentiation advantage and efficiently administering large customer bases. For those companies building and maintaining their own networks, access to capital and being able to quickly establish critical mass is most important to satisfy the immense startup costs associated with running a proprietary network. Resellers such as MVNOs not only must be experts at forging long-term relationships with the carriers they purchase capacity from, but also must have brands that are strong enough to extend into the telecommunications market.

Taken From : Enterprise Guide to Gaining Business Value from Mobile Technologies

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