I linked yesterday to an Om Malik post where he talked about a new report saying that MVNOs aren’t the licenses to print money that many people think they are. The report did note that “next-generation” MVNOs, which are eschewing the low-cost, barebones model of current virtual operators in favor of offering premium services at premium prices.
One of Om’s favorite favorite MVNO whipping boys is Amp’d, which today announced a promotion to give people three months of unlimited calling if they subscribe to its $15 per month Amp’d Overload content plan. Amp’d normally sells unlimited service for $150 a month. Giving away service “worth” $450 to get people to pay $15 a month doesn’t sound like such a great idea, and would make you think they’re not attracting too many subscribers.
The idea that operators — MVNOs or otherwise — can simply offer a bunch of content and charge premium prices for service remains unproven. There are so many things for consumers to consider in choosing which service to buy, and thinking that all this supposedly great content will cause them to overlook any and every other shortcoming, as well as high prices, is naïve.
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