MVNO Mini-Case Studies
Perspective by Jesse Boateng for:
MobileIN.com
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MVNO #2: Boost Mobile LLC

Boost Mobile, headquartered in Irvine, California, is a telecommunications division of Nextel Communications Inc.  This MVNO focuses solely on developing and distributing wireless communications products for the youth market.  Boost offers pay-as-you-go wireless service with many additional features to enhance its product and increase revenues.

Founded in September of 2002, Boost Mobile™ was a venture of Nextel Communications, Inc. with Boost™ brand of Australia and New Zealand.  Originally piloted in the California/Nevada region, Boost Mobile™ targets technically savvy youth by offering two-way messaging, wireless web, Java-enabled gaming capabilities and nationwide instant communications through Nextel’s walkie-talkie.  Coupled with sponsorship of action sports events, action sports teams, television programs, festivals, concerts, and other youth-centric activities, Boost Mobile™ aims to attract and dominate today’s high spending youth market.  Their media and licensing partnerships with Quiksilver and a “strategic relationship” focused on events and sponsorships with surf brand Billabong, finish the Boost package to provide an alluring product for their target market.

This MVNO's current management includes Don Girskis (Vice President & General Manager), John Woodlock (Director of Finance), Mark Fewell (Senior Director, Media & Business Development), Michael Lanzon (Vice President, Sales), and Neil Lindsay (Vice President, Product Management) whose biographical information can be found at http://www.boostmobile.com/about_management.html

Boost, being a part of Nextel, can only offer Motorola mobile phones.  All phones include high-quality digital cellular calling, voicemail, text messaging, Boost Walkie-Talkie™ digital walkie-talkie service, Nextel wireless web, and national roaming.  Easily found, Boost phones and accessories can be located at over 3,000 locations where youth prefer to shop, including Best Buy, Wherehouse Music, Good Guys, Target, Wal-Mart and Nextel wireless stores nationwide and many youth fashion retailers in the California/Nevada region.  Current available phones and their specifications are listed below:

Phone/Feature

i95cl

i60c

i730

i205

Roxy (i90c)

i55sr

Faceplates

 

 

 

X

 

X

Boost Walkie-Talkie

X

X

X

X

X

X

Java Games

X

 

X

 

X

X

Speaker Phone

X

X

X

X

X

X

Voice Mail

X

X

X

X

X

X

Vibracall Alert

X

X

X

X

X

X

Text Messaging

X

X

X

X

X

X

Wireless Web

X

X

X

X

X

X

National Roaming

X

X

X

X

X

X

Phonebook

X

X

X

X

X

X

Ringtones

X

 

X

X

X

 

Color Display

X

 

X

 

 

 

Wallpapers

X

 

X

 

 

 

Voice Recorder

X

 

X

X

X

 

Voice Activated Dialing

X

 

 

X

X

X




Four out of the six phones are Java enabled providing the option to download games, wallpapers and ringtones from the Boost Live website on the wireless web.  Game categories include Arcade/Classic (13) *, Strategy (8), Casino/Card (3), Puzzle (12), Sports (33), Action (32) and Other (3).  Provided in concert is a chart with the names of each game and their breakdown by category and publisher.  Wallpaper categories include: Sports (25), Extreme Sports (28), music (61), pinups (111), TV/movies (54), cartoon/comics (180), military (115), Startrek (23), cityscapes (30), travel (119), animal (175), nature scenes (185), fine art (32) and miscellaneous (204). In descending order of application number, the publishers for wallpapers are: Webshots, Versaly and Zingy, Inc.  The Ringtone categories include: R&B/Rap (212), Rock (250), Pop (233), TV/movies (66), Latin (28), Urban (28), Oldies (27), Techno (12), Island/Reggae (9), Soundscapes (9), Jazz (6), Blues (6), or Sounds (184: only for the i730) published mostly by Zingy, Inc. with a limited number by Versaly.  Boost provides the latest applications and ringtones that can be downloaded online or through the phone. 

Financial/Customer info: ARPU, Revenue, growth, etc

The success of Boost Mobile™ looks very promising, especially given the fact that they have special benefits and leverage that MVNO’s lack.  Their wide array of application/ringtone choices provide a little of everything to satisfy all tastes.  However, they might be cutting their market short by solely targeting the youth.  An older generation could benefit from the relatively inexpensive (25 cents a minute) prepaid services they provide.  I would personally buy a phone like this if I was in the market for a prepaid device due to all the games and ringtones, but pricing-wise, I would go with 7-eleven’s Speak Out program due to their rollover minutes, no roaming, and cheaper rate (20 cents all the time).  Boost counters heavily with their almost countless number applications and ringtones, their heavy TV/radio advertising and the Nextel brand name.


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