Saturday, July 09, 2005

Coming to a Phone Near You?

Forbes reports on the how several large companies are looking to get into the cellular phone market, not through building their own networks but by reselling another company's services as a mobile virtual network operator (MVNO).

This sales technique is commonplace for landlines and to a lesser extent DSL. Among companies mentioned as exploring MVNO services are Wal-Mart, Nike, and Apple. Others who are already in the game: 7-Eleven, Earthlink, and Disney subsidiary ESPN.

The idea is feasible though I expect that too many companies will try to cash in. All the new resellers will probably lower cellular prices even further.