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March 18, 2002
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Emerging Niche Players in MVNO Market Announced
by The Yankee Group and Sentori at CTIA Wireless 2002
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New Markets Offer Opportunities for
Accelerated Growth in the Wireless Arena
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ORLANDO - In a press conference held today at CTIA Wireless 2002, The Yankee Group, a research and strategic
consulting firm, and Sentori Inc., a billing and customer care software provider for the communications services
industry, announced an emerging niche within the MVNO (Mobile Virtual Network Operator) wireless market space.
These new niche players, specifically affinity and specialty channel MVNOs, offer new billing and customer care
opportunities for leading solutions providers focusing on the North American market.
Paul Hughes, Director of Billing and Payment Application Strategies research at the Yankee Group, revealed findings
from its market research and Sentori's client base that distinguishes a new class of MVNOs - affinity and specialty
channel. With unique characteristics that include affinity-based business models, unique sales or distribution models
to captive audiences and less price sensitivity, these new niche players are primed to become a profitable revenue
zone in the wireless market.
"In working with some of our billing clients it became apparent that affinity organizations and specialty channels
providing wireless services to their customers have unique business models that are attractive to large wireless
carriers seeking new markets in which to sell their products and services," said Vincent Vu, CEO, Sentori.
According to wireless industry experts, traditional MVNOs are defined as mobile operators that do not own the
spectrum or network infrastructure but possess characteristics including a widely known brand name, large loyal
customer base and core business outside traditional communication services, e.g., Virgin Mobile. The new field
of emerging MVNOs may have an edge in key segments over traditional MVNOs due to niche market players' loyal,
less price-sensitive customers who are less likely to churn.
"Billing plays a mission-critical role in the success of these new niche market MVNOs as they have the benefit
of full control over how they interact and sell to their subscribers through their own billing and customer
care systems and processes," said Hughes.
Niche MVNOs are predicted to capture up to 10 percent of all U.S./North American wireless subscribers by 2005
and generate revenues of up to $7 billion.
Hughes added "The wireless industry will certainly examine all nuances of this new market as it can help carriers
offset network build-out and license costs and provide long term incremental margins derived from specialized
segments while driving overall subscription growth."
About Yankee Group
As a global leader in technology research and strategic consulting, the Yankee Group provides accurate, reliable,
and trusted research; custom consulting; and personalized one-to-one client interaction encompassing all areas
essential to business success: the Internet, electronic commerce, communications, wireless, computing, and
enterprise applications. Now in its fourth decade, the company is headquartered in Boston and maintains offices
throughout North America, Europe, Latin America, and the Pacific Rim.
About Sentori
A privately-held, Maryland-based company founded in 1994, Sentori Inc., provides multi-service customer management
software solutions to the communications services industry worldwide. Led by its flagship product - the Sentori®
Billing and Customer Care system - this rapidly growing company is helping evolving 3G wireless carriers,
value-added wireless resellers (MVNOs) and broadband service providers acquire and retain high value customers,
by giving them control of the entire customer management process. Sentori has a track record of in-budget and
on-time product implementations combined with world-class client support services.
For information about Sentori's products, services and employment opportunities visit
www.sentori.com or call 1-877-SENTORI.
| For Further Information, Contact : |
| Young & Associates |
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Sentori, Inc. |
| Jennifer MacLeid |
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David Dague |
| Tel: 301-309-9404 |
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Tel: 240-568-6201 x-268 |
| e-mail: jenniferm@yapr.com |
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e-mail: ddague@sentori.com |
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