Hispanic-focused MVNO sells to APC: We’ll ‘cut the fat’ from Movida, says exec

APC Wireless announced it closed a deal late last week to purchase the recently bankrupt MVNO Movida Communications Inc. for an undisclosed sum.
Movida, which targeted the Hispanic market, filed for Chapter 11 bankruptcy in a Delaware court earlier this month, blaming a “costly and restrictive” mobile virtual network operator agreement with Sprint Nextel Corp. for its demise.
However, Sam Bahreini, COO of APC Wireless, said the network deal with the No. 3 carrier is still intact.
“Sprint’s been spectacular and our best partner. They’ve been nothing but helpful through this phase,” he said. “Sprint’s been more than helpful, great guys, we can’t praise them enough.”
APC purchased another regional MVNO, Liberty Wireless, earlier this year. Bahreini said APC put Liberty in the black within 60 days while increasing its subscriber base.
“We plan to do the same thing” with Movida, he said. “We’re going to cut the fat from Movida and we’re going to run a tight ship.”
The Movida brand, rate plans and subscriber contracts will remain the same, but Bahreini said APC will improve the user experience, re-double emphasis on the Latino market and expand the service’s push into additional market segments.
“We’re just going to revamp everything – go back to the old way, sort of the grass roots that Movida was,” he said. “We felt that it was a great opportunity and we feel we can make it work.”
“We’re going to focus, of course, on the Latino network as far as the community goes. But with Liberty Wireless there’s going to be an added benefit. We’re going to go after everybody,” Bahreini added. “We’re just trying to salvage everything and keep everyone happy.”
Movida launched in 2005, at the height of the wireless industry’s MVNO hype. And the company’s decline tracks alongside a number of other MVNOs, including Amp’d Mobile Inc., Disney Mobile and others.
APC Wireless connects wireless device manufacturers with service providers, distributors and retailers to build up product portfolios. This year the company entered the MVNO game, now with two acquisitions under its umbrella.