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A MVNO (mobile virtual network operator) buys wholesale minutes from a wireless carrier, customizes its services, content, and devices, and repackages them for sale to niche markets based on age, nationality, interests, and sexual orientation. The luxury brand called Voce is one of the most talked about new labels of the cellphone market and is the latest example of an emerging MVNO. Matthew Johnson, co-founder of Visage Mobile, which assists in bringing new MVNOs to market, says consumer brands and affinity groups believe they can serve customers better than large carriers, which tried to please everyone. Currently, ten million people talk over MVNOs and represent $4 billion in annual revenue, says Lewis Ward of IDC. Ward says there are ten MVNOs currently in the U.S., and more are on the way. For instance, Ampd offers a medley of music, video, and games to those between the ages of 18 and 34, and ESPN plans to sell voice plans with sports news, scores, and games starting in 2006. Carriers are adopting the trend, but carefully, while selling minutes wholesale to a consumer brand. With its own ad budget, the carrier gets new subscribers at almost no cost, instead of paying about $300 to acquire a customer at retail.
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