Fortune contrasts the failure of SunRocket to the failure of Amp'd Mobile, noting that neither owned their own networks. They simply resold what other operators provided.
Now we're not saying that lack of network control is the sole reason for the demises of SunRocket and Amp'd. (Nor is network ownership a guarantee of success: Companies such as Teligent and Winstar had access to wireless spectrum in the late 1990s but nonetheless crashed.) But there's no question that telecom companies without at least some of their own network assets have a hard time making it.
There's a lot of truth in that simple observation. Margins in communications businesses are slim, and by extension, resale margins even slimmer.
Alec Saunders is the Vice President of Developer Relations for BlackBerry maker Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.
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Me too services can't compete on price. The solution seems pretty obvious to me – don't offer me too services.