The potential breadth of the mobile virtual network operator model was evident last week as a pair of companies reported plans to enter the wireless space with services spanning the gamut from the loftiest of the high end to entry-level prepaid services.
Seeking to go where few operators have dared tread, Japanese content provider Faith Inc. was getting set to launch its Voce wireless service designed to cater to consumers looking for more from their wireless experience. Steve Stanford, who previously worked at Boost Mobile L.L.C. and more recently at Amp’d Mobile Inc., was tapped by Faith to run its U.S. MVNO, which will use Cingular Wireless L.L.C.’s network.
Stanford explained that unlike a majority of MVNOs targeting the active youth or tech-savvy male demographic, the Voce service would target today’s high-end wireless users who already spend several hundred dollars per month for wireless services and are constantly looking for the latest high-end gadgets.
“Voce will target consumers who look at wireless service as more of a lifestyle than just a means of communications,” Stanford said. “Wireless consumers now are presented with the same level of customer service regardless of how much they spend. We think there is a place for a carrier that offers a service experience more akin to what the consumer is spending.”
Stanford noted that while Voce’s pricing structure has not been completed, potential customers could look at paying in excess of $1,000 to sign up for the service and in the neighborhood of $500 per month for unlimited domestic voice and data services. Some of the initial expense will include a high-end device of the customer’s choosing, as well as the ability to upgrade to the latest gadgets for no additional charge as soon as they are available.
Stanford did not reveal initial handset options, but said Voce was in discussions with handset vendors to provide unique and, in some cases, exclusive devices. Stanford added that the selection would include both traditional handsets and smart phones, though the company wanted to keep the selection to around five devices at any one time.
In addition to exclusive-and often changing-devices, Stanford said Voce would offer in-home training on how to use the devices as well as all provisioning services. Customers also would be only a phone call away from specialized customer-care representatives from Voce’s own customer-care center.
“Voce customers will not have to worry about waiting on hold or waiting in line at their Verizon store to get service,” Stanford added.
While Voce is handling its own customer care, mobile virtual network enabler Visage Mobile is handling Voce’s back-end services.
Stanford noted that Voce was not expecting to grow the high-end market since most of its target audience already uses wireless services heavily, but instead aims to take share away from established operators. The company also said it expected to attract fewer than 100,000 customers to its service, and more than likely would see subscriber numbers in the low tens-of-thousands.
“We don’t expect and are not prepared to handle a high volume of customers,” Stanford said. “Our business model is not set up to handle that kind of volume.”
Stanford added that Voce would launch service by the end of the first quarter in New York, Los Angeles and San Francisco, and would look to slowly expand the offering into a select number of additional markets.
While Voce is setting its sights on the high end of the market, Circle K Stores Inc. announced plans for a prepaid MVNO service targeting customers with more modest expectations. The convenience store chain said Talk-and-Go Mobile service will offer no-contract, prepaid calling services using Cingular’s GSM network.
Circle K said the service, which is powered by MVNE Ztar Mobile Inc., uses the $40 Nokia Corp. 1100 handset and will be offered in more than 2,100 locations across the country. Airtime for the service is a flat-rate 20 cents per minute, with refill minutes available in $25, $50, $75 and $100 amounts that are good for 120 days. Customers can carry over their unused balances if their account is refilled within 120 days.
The service also includes nationwide long distance, voicemail, caller identification, call waiting, three-way calling, text and instant messaging. In addition, the service includes bilingual, automated customer-care systems in Spanish and English and automatic account balance notification.
Circle K said it will continue to sell competing prepaid services from Virgin Mobile USA L.L.C. and Cingular’s GoPhone, as well as top-up prepaid cards for Boost Mobile and Alltel Corp.
The Circle K service is nearly identical to the MVNO offering launched last year by convenience store competitor 7-Eleven Inc. 7-Eleven’s Speak Out prepaid service also uses Cingular’s network and is powered Ztar’s MVNE platform. The 7-Eleven service is available in more than 5,300 locations across the country and charges a flat rate of 20 cents per minute for calls.
