Korea : Onse Telecom wants to be a MVNO

Onse Telecom announced its intention to become a MVNO by 2011, lobbying the National Assembly to pass the law obliging 3 incumbents to open their networks.

The landline operator boasted it could claim 5% of the market (about 2M customers), thanks to lower rates and "differentiating" offers.

I guess Onse execs are more interested in "diversification" than "differenciation" : VoIP is bound to hit seriously their core business in Korea (international voice services - ie Shinbiro calling cards), and all 3 incumbents are also integrated fixed-mobile players, only bigger : LG Telecom is about to follow SK and KT and to merge all its telecom units.

Differenciation through creative marketing ? Don't expect support from the new mother company : Taihan Electric Wire is into wires, fibers, powerlines... Onse itself delivers equipments and systems, even if it stopped its terminal manufacturing activity last year.

Onse Telecom is expected to post profits in 2009, but that will be a premiere after an eight year losing streak. Lately, they've mostly been converting third bonds with warrants into shares...

So the message is not "Onse Telecom wants to be a MVNO" as much as "if you want to become a MVNO in Korea, Onse Telecom can help you face the big guys." Of course they could leverage on their customer base, but they also enjoy a certain technical know-how, and the experience of interfacing with different network operators. So they could position themselves as the ideal MVNE, starting with themselves as the first customer.

mot-bile 2009

Saint Hubert Mobile, pray for customer hunters

1.18% of the market, that was Frederic Nihous's score at the French presidential elections last April. Predecessor Jean de Saint Josse got 4.23% back in 2002. How much will Sebastien Harle d’Ophove get ?

The founder of Saint Hubert Mobile, the first MVNO by hunters for hunters, must be roaming the corridors of CPNT (Chasse Peche Nature et Tradition), the French pro-hunting pro-rural party / lobby who pushed Saint Josse and Nihous, not to mention 245 candidates for the recent legislative election. "SHO", who used to work for Belgian MNO Base, needs to build another base from scratch. And the first logical step is to try and scare up a few preys among the 420,645 people who casted a ballot for Nihous 2 months ago.

Oh my deer... niche marketing if I ever saw one !

Saint Hubert, patron of hunters, is hosted by MVNE Coriolis... not much of a guarantee either. These days, fellow French and European MVNOs are hunting investors more eagerly than they are hunting customers. Bad vibes for Ten Mobile, debitel, TDC... not to mention Amp'd in the US (under cash perfusion from Verizon Wireless).

easymobile tries to survive by changing business models in a Blyk. I come for free, advertising can finance everything, I'll grow the helluva big customer base and be the king of the hill.

How many "free" ISPs survived ? At least those could bloom in a dial-up, non-broadband era...

Actual hunters won't waste time nor bullets for such poor game.

MVNO frenzy and extreme hangovers

Sprint welcomes another MVNO, and the utterly bankable KDDI Mobile brand has a crystal clear ambition : selling more Kyoceras in the US.
Meanwhile and closer to Japan, Google Phones are being made in Taiwan by HTC and cobranded by the MNO. The utterly bankable Google brand is definitely not meant to become a MVNO. Yet.
The so nineties Blyk concept is gathering an impressive pool of advertisers for its pan-European launch on Orange networks.
The so eighties Sonopia's DIY MVNO / MVNE concept is gathering an impressive media coverage. Get cool calling cards with your company's logo, grow as big as AT&T in less than two weeks... ego will sell this summer.
But the so Y2Ks WiFi - 3G PC Card concept doesn't sell : Helio Hybrid ends a partnership with Boingo going airbuso...
The MVNO primaries are definitely not over, but Amp'd clearly feels a Joementum - I don't have New Hampshire's figures (nor Canada's, for that matter), but this natural born winner is approaching the 200,000 subs mark (100,000 EOY 2006), with a 84% postpaid customer base (just slightly down from 89%), and ARPU remains strong at $100. Do you want the sign that says "purchase me right now" or the one that reads "wanted : Vegas wedding chapel" ?
Someone must clean this crowded place one way or the other, even the most extreme. Fortunately, ExtremeMob (extrememob.com) is not the mafia's MVNO but the result of a deal between Xebra Limited and Vodafone UK. This fall, Extreme Mobile Limited will target the X generation with all the Weapons of Mass Disruption of the Extreme Media Group (extrememediagroup.com) : Extreme Sports Channel, Ex Publishing, Extreme Entertainment (content), Ex Events, Extreme Retail and even Extreme Hotels, Extreme Parks, or Extronics. "ExtremeMob is more than just about extreme sports, it’s about being an integral part of the lifestyle of under 24’s". The handset shown in the press release goes with an extreme headset, and the said "under 24's" may go with an extreme hangover thanks to Xebra's Extreme Drinks.
ExtremeMob can claim the Pole position : Xebra was recently purchased by Centernet / NFI Midas.

MVNE and VMVNOs

MVNOs are blooming but the most successful one (actually, the grand sugarmamma of them all) happens to be a virtual MVNO : behind a unique and powerful brand, the Virgin Mobile franchise looks like a financial chameleon. Each story depending on too many factors to build a case, all attempts for an international seamless player failed and there is no such thing as a pure player.
Most MVNOs tend to communicate on partnerships rather than financial data. Amp'd can be a practical vehicle / advertising tool for content providers (MTV, UMG) or enablers (Qualcomm), but a sexy partnership with Break.com doesn't necessarily mean a wedding with breakeven.net. Even niche marketing experts can fail where they should sparkle : Movida are only proposing now the first prepaid plans much needed by a mostly un-banked core target and I wonder how many customers they average per POS (45,000 points of sale claimed mid 2006)...
On the other hand, MVNE (Mobile Virtual Network Enablers) are all the rage. In France, where MVNOs claimed a stratospheric 1.46% last June (up from 0.09% one year earlier), The Phone House / Carphone Warehouse found their vocation after practicing as far as the short MNO leash let them go (kenavo Breitz Mobile), and their union with Virgin Mobile definitely looks better than their unproductive affair with AOL (mViva). France's top soccer clubs (OM, PSG, RCL, ASSE and OL) are using a major in marketing for fans, Universal Music Mobile, as their commercial MVNE... but the actual technical MVNE is the MNO itself, as the OM / PSG / RCL / ASSE / OL mobile by Orange branding tells us*.
Well, the fact is MNOs remain the most vital enablers for MVNOs. And all this 'virtual' / 'enabler' stuff is nothing but words. This isn't a plug & play environment yet.


* Orange invented the "by Orange" concept for M6 mobile - a smart way of pleasing the regulator while feeding the brand.