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Could Amazon beat Apple and create the largest MVNO in the world?

By Mauricio Freitas, in , posted: 12-Jul-2012 08:48

By now you probably read reports around the web about Amazon's efforts in creating its own smartphone. Articles on Bloomberg and The Wall Street Journal say it's being tested.

I'm pretty sure it is. I can't go in details now without risking someone's job, but from little bits and pieces collected around I'd say this has been going on for some time now.

If Amazon continues with its Amazon Kindle Fire ecosystem (and why not?) then it will be an Android-based device. But what I haven't seen yet is any comment on how Amazon's work with telcos from around the world could make it the largest Mobile Virtual Network Operator (MVNO) around.

Generally speaking, a MVNO works with a mobile operator to get bulk access to network services and resells these with its own branding and prices.

Amazon, through its Kindle 3G strategy, already has relationships established with almost one mobile operator in each single country in the world.

This is how it works: when you buy a Kindle 3G you receive an eBook reader (or tablet as is the case with the Kindle Fire) with mobile data access enabled and ready to use. You can turn the Kindle 3G on, select a book online from the Amazon store using its browser and have it delivered in seconds, without ever coming close to a computer. This also includes subscriptions - newspapers, magazines and blogs.

At no moment you have to sign a contract with a mobile operator. You don't actually even need to know which mobile operator is your Kindle connecting to, or how much they charge for the content download (mobile data charges are already included in the book price). You don't have to insert a SIM card in your Kindle 3G (there isn't even a visible access to it). It's ready to use out of the box. All you know is that Amazon is sending the book to you "over the air", automatically charged to your Amazon account.

Currently this is for electronic content download only, but there isn't anything preventing Amazon from offering voice services in addition to the existing mobile data they already use. It would make even more sense if these were VoIP over the data network.

Rumours have been around for years now that Apple would like to sells a more complete iPhone package - one that they control without interference from mobile operators. This would even be the force behind Apple's insistence in creating a new nanoSIM card standard.

We don't know if this is the model Amazon will bring to its smartphone. But it would make sense. And it looks like Amazon could beat Apple to the market.



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Mauricio Freitas
Wellington
New Zealand


I live in New Zealand and my interests include mobile devices, good books, movies and food of course! 

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