MVNO business is unique. MVNO does not need to invest in expensive telco infra, yet be able to sell products like the mobile operators, prepaid, postpaid, voice, data, sms, content etc. MVNO business a growing market in Malaysia with XOX, TUNETALK, MERCHANTRADE, REDTONE, OKTEL, BARAKA, SALAMFONE, HAPPY, TRON, MYEVOLUTION, .. The MVNO usually compliment the business of the host mobile network operator as they focus on niche area; migrant, traveler, ethnic, retail brand, younger age group, etc.
In Australia, 20 over MVNOs. Example of a MVNO doing fantastic in many countries is ****** Mobile.
Like any new business including MVNO business, there is the start-up & development cycle. XOX will need to agressively develop the market for the subscribers gain and will incurr market development expenses (marketing, advertising, agents recruitements etc etc). On the other hand, the operations expenses is another major concern. In MVNO business, one of the big ticket operation expense is the mobile network host (vendor) charges to the MVNO for the commitment of the MVNO.
As XOX business compliments the host and may be able to negotiate with the host to settle the issue/charge/cost amidcably as the host is also dependent on the MVNO to grow their business.
XOX price drop from 0.80 to 0.16 would have factor-in many negative things of a start-up, developing business, managing operating cost. XOX MVNO business has great mid-term potential as telco industry is growing ..