Wireless Resellers Are Struggling
The wireless reselling market, which looked like a major growth industry as recently as two years ago, is now struggling, to the point where several major names in the field have either gone out of business or are struggling, according to a USA Today report Tuesday.
A wave of closures in the last 18 months- including Amp’d Mobile, ESPN Mobile, Movida, Voce and most recently Sonopia- means that about ten wireless resellers, out of less than 70, have gone under. Meanwhile, more established firms like Virgin Mobile are losing money on reselling.
The struggles are attributed to strong competition from major carriers, low volumes and operational blunders.