Press Release

Whitey Bluestein Provides
Roadmap to MVNO Success

Telephony Columnist Chairs Strategy Sessions at National Conference

San Jose, CA - March 7, 2005 - Whitey Bluestein, widely recognized as the creator of the MVNO industry, today warned a national gathering at the annual MVNO Strategies and Markets Conference that entrants in the burgeoning industry have three major obstacles to overcome in their quest to capitalize on marketplace opportunities.

Bluestein, who pioneered the concept of the mobile virtual network operator (MVNO) when he developed a virtual network operation for pre-WorldCom MCI in the mid 1990s, said “there are three key areas that most new entrants simply have thought out either tactically or strategically: distribution, customer churn and industry technology.”

He noted that two outlets, Wal-Mart and RadioShack alone account for 60 percent of wireless handset sales among major U.S. retailers, making distribution deals more difficult than most new entrants understand.   

Current wireless operators spend nearly $10 billion replacing “lost customers,” he said.  “No one has adopted a comprehensive loyalty program in wireless, beyond providing new handsets every 18-24 months. The MVNO that ‘cracks the code’ will greatly improve its chance of success. Ignoring it will prove very costly.”

Potential MVNO operators also often misunderstand the pace of technological change.  “Network operators are almost always first to market with new products, services and technologies, and it is often a fact of life that MVNOs have to bargain to obtain these services after launch,” he said.

He currently runs Bluestein & Associates (www.whiteybluestein.com) and is an advisor to several global corporations in the media/entertainment, wireless, retail and healthcare fields.
A regular contributing columnist for Telephony Magazine, the leading telecommunications industry magazine, Bluestein devoted his current column (Telephony Magazine, March 6) to the topic of MVNOs.
For the MVNO conference, Bluestein, in addition to his duties as the chair for the day, moderated two panel discussions at the event, which was held at the Wyndham Hotel.  Produced by UK-based Informa Telecoms & Media, conference participants included Cingular, Ericsson, Sony and Verizon.
“Having watched the MVNO industry develop and mature over the past 10 years,” Bluestein said, “I know that this conference provides a platform for far-reaching strategic discussions.  In the wireless and cellular industries today, no topic is more discussed than MVNOs.”
Bluestein is working with several companies who have either launched MVNOs or are considering MVNO strategies.  Prior to returning to consulting in 2005, he was executive vice president for corporate and business development at Visage Mobile, a firm specializing in providing outsourced solutions to national brands that provide private label wireless services to their customers.  With more than two decades business development experience, Bluestein has also held senior executive positions with pre-WorldCom MCI and NorthPoint Communications. 

Contact:
Whitey Bluestein 
Bluestein & Associates
415-847-2583
whitey@whiteybluestein.com