Movida Communications Inc. reported an agreement with Sprint Corp. and Wal-Mart to provide nationwide prepaid wireless voice and data services to the U.S. Hispanic market using a mobile virtual network operator model.
The service will use Sprint’s wireless network to offer prepaid domestic and international calling options that will be sold as Movida-branded handsets and calling cards in Wal-Mart stores in select markets and other retailers in the first half of this year.
Movida, which is owned by privately held media and entertainment organization the Cisneros Group of Companies, claims the Hispanic population is expected to grow to 17 percent of the domestic population by 2010, and more than 90 percent of Latin American wireless business comes from prepaid-type services.
“Movida is about understanding Hispanic consumers and offering them products and services that help them stay connected-both with their friends as well as their culture,” said Anthony Montoya, president of Movida. “We’ve built the perfect alliance to successfully reach this segment.”
Sprint currently has several MVNO relationships, including deals with Virgin Mobile USA L.L.C., ESPN and Qwest Communications International Inc., which account for more than 3 million customers on its network. Analysts have been expecting Wal-Mart to eventually enter the wireless market with its own branded service that will likely use a similar MVNO model.
