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Dell could be latest device MVNO, in Japan at first

By CAROLINE GABRIEL

Published: 31 March, 2009

READ MORE: Japan | MVNO | Dell

The trend for device makers to move beyond partnering with carrier brands, and actually launch their own virtual operators, is gathering pace, with Dell the latest to take the plunge. This is not - as yet anyway - a way to sell the Dell smartphone designs that cellcos reportedly rejected, but to offer notebooks with bundled HSPA access and call plans. The first launch is reported to be in Japan, where Nokia has also launched an MVNO for its luxury handset brand, Vertu.

Dell is not officially commenting, but many sources are reporting its latest strategy. In this new strand of the MVNO model, the network owner provides a connection and reaps a fee, usually based on data usage, but remain invisible to the end user - with the twist on traditional MVNOs being that the brand belongs to the device. Amazon's Kindle has been an important precursor and last week Sprint said it expected to boost its business from supporting services running on wireless-embedded products from music players to business communicators. As carriers build out 4G networks, with high bandwidth and often with open access models, they will be increasingly happy to find partners to use excess capacity.

Dell, like most PC makers, is looking for new channels as the traditional desktop and notebook markets contract and come under threat from smartphone/PC hybrids. Already, they are selling wireless laptops via carriers, following the cellphone subsidy model, and pushing into cutdown netbooks. Dell's first experiment with a full MVNO, which gives better customer control and brand awareness than a cellco deal, plus a share of the wireless data revenue, is confined to Japan, and will run on the NTT DoCoMo network, which will also be used by Nokia Vertu. Nokia is also said to be pursuing the direct-to-consumer route for its handsets, via an MVNO deal, in India.

The Dell pilot in Japan will be emulated elsewhere, insiders said, assuming that it succeeds in its launch country. It will involve notebooks with built-in HSPA cards, priced between $500 and $2,000, shipping with a fixed amount of mobile broadband access. After using this up, customers buy additional access with a credit card. The offering will launch this summer.