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Learning from IspOne. Are MVNO’s too risky?

Being a mobile virtual network operator (MVNO) might seem like a good idea at the time, but isn’t selling on price and being dependent on the whims of a single provider fraught with risk?
Wholesaler ISPOne went into administration this week and it seems likely that the low consumer prices charged by Kogan Mobile are at least partly to blame?

After all, they were very cheap. The two were fighting it out in court earlier the year with the wholesaler complaining that Kogan’s customers were using too much. ‘But’, says Phil Dobbie in this week’s CrossTalk podcast, ‘what do you expect when you sell flat rate plans?’

He talks about the collapse of ISPOne with Communications Alliance CEO John Stanton. And he asks Rolf Hansen, CEO of Amaysim, what makes his MVNO any different? And Ilkka Tales also gives us a brief history lesson, reminded us of the court case between Vodafone and Mobile Innovations. If an MVNO is really successful, won’t their carrier turn greedy?

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