Time will tell if software vendors that built platforms to support mobile virtual network operators are being stoic or honest in defending the MVNO model in light of ESPN's early exit. But for now, the big shocker hasn't sent big waves through the ranks of back-office suppliers.

Some industry experts are still scratching their heads at how quickly ESPN gave up on its mobile service. But it may not mean much to the industry, particularly to the software industry that supports the business half of the MVNO model.

After all, vendors like Convergys, which supported the ESPN launch, are approaching the market opportunistically — not strategically, said Patrick Kelly, co-founder and partner of OSS Observer. “Most [vendors] understand that the flame-out rate will be high.”

Telcordia, which didn't support Mobile ESPN, but does support Disney Mobile, Virgin Mobile USA and 13 MVNOs combined, also has taken the opportunistic approach to MVNOs. It understands that not all models will make it. Therefore, the applications it hosts for these providers can and are extended to other providers.

“There are several models being used by MVNOs, and having ESPN pull out does not necessarily reflect the market in general. We are seeing MVNOs with successful growth,” said Cathy McMahon, executive director of product management for hosted solutions at Telcordia.

McMahon did say that the market in general has moved slower than the company had anticipated, but she can't point to one dominant reason for ESPN to have quit so soon. The Disney model is different, she said. It is going after an under-served market and has a targeted distribution strategy.

“Having handsets available, where they sell them and how easy it is for subscribers to access services are very important for the MVNO model and will continue to make a difference in an MVNO's success,” McMahon said.

She said Mobile ESPN's demise won't end creation of new MVNOs, but it might give them pause. “They may just approach things more diligently or cautiously,” McMahon said.

Kelly said ESPN's decision was the result of a lack of higher-definition mobile handsets for video clips, sky-high fees and impatience. “I don't think ESPN gave it sufficient time to allow new customers to convert to the service. Most subscribers will wait for contracts to expire before evaluating new mobile services,” he said.

Convergys, which teamed with Visage Mobile in its mobile virtual network enabler (MVNE) business, appears un-phased at this latest turn of events. “This is an exciting time for MVNOs, as the dynamic interplay of various business and market drivers determines the evolution of this market,” said Mark Sloan, Convergys' vice president of consulting and professional services. “Through it all, Convergys remains committed to supporting our MVNO clients with the billing and consulting services they need to help them efficiently and effectively deliver their unique services.”

And others, such as Stephen Waldis, president and CEO of Synchronoss, a provider of hosted activation services with mostly wireless operators, are still bullish on the concept. “The MVNO model is tougher to market than people think,” Waldis said. “But it has legs in a mature state. Maybe ESPN was conceptually correct, but too targeted.”

Visage Mobile, which supported the Mobile ESPN launch, refused comment on the ESPN decision. The MVNE also supports Disney Mobile, Embarq, Primus Telecommunications and others.