Like Ricochet, is the future of MobileStar already known?
There are, IMHO, some serious flaws in the business models of the current wireless providers. This is becoming more and more evident as 3G roll outs are done, and not done. The costs of constantly upgrading the wireless infrastructure are extremely high, and without the ability to defray these costs, the ROI in a quickly evolving market and industry are just too high.
This quote actually demonstrates the flaws of their business model … one which is tracking closely to the same cellular model:
“But like 3G and other wireless technologies, Wi-Fi must find backers at a time when investors have little appetite for tech start-ups. Mr. Kaiser is trying to raise $30 million in new funding for MobileStar, which he says has enough cash to operate at current levels for four to five months.”
IMHO, MobileStar is already seeing the flaws that are also hitting those looking to deploy 3G wireless solutions as promised.
Elliot Spagat writes in great detail about MobileStar’s plans, and commentary on the rest of the industry, in today’s Wall Street Journal: unfortunately, the article is not publicly linkable, available only on their subscription site. A brief summary: MobileStar has received additional financing and hired a new CEO. Both WayPort and MobileStar are sitting on large cash stakes. MobileStar is now stating that roaming agreements would be premature in this nascent industry; this sounds more like a winner-take-all argument, and they are in the catbird’s seat with more active locations than any other national provider. MobileStar apparently has the contracts for JFK, San Francisco International, and O’Hare (Chicago) airports. A formal roll-out with advertising of the Starbucks network is planned for later this year.