Although he didn’t get credit for the MVNO acronym, wireless entrepreneur Whitey Bluestein pioneered the concept of the mobile virtual network operator when he developed a virtual network operation for MCI in the mid 1990s. He later helped Visage Mobile build itself into a mobile virtual network enabler for MVNO hopefuls. Now he’s back to advising early-stage companies in wireless and other industries (www.whiteybluestein.com). Here’s more of Bluestein’s interview with Telephony (June 27, 2005, page 60).

I left MCI in 1997, days before WorldCom launched its hostile bid for MCI and began working with several VCs on wireless projects and new businesses they were looking at. In 1998, I returned to California to run business and corporate development for NorthPoint Communications, one of the leading DSL providers. I did that for more than two years, completing strategic deals with RadioShack, Microsoft, Global Crossing, Cable & Wireless and a number of other players. And I brought in the deal where Verizon was going to merge its wholesale broadband business with NorthPoint; regrettably, that deal never closed.

I was at NorthPoint until early 2001, when I began consulting with several young companies--helping them build business relationships and get deals done. I also was working with several VCs, helping them evaluate wireless and other opportunities. In late 2001, Selby Ventures in Menlo Park called me about a new company in the MVNO space. He asked if I knew what an MVNO was, and I told him, yes, I basically developed the concept--before the acronym was created--with MCI’s virtual wireless network back in 1996. I looked at Visage Mobile’s business plan to enable MVNOs and thought it was an absolutely fabulous idea; not every aspiring MVNO is going to want to invest tens of millions of dollars to build out infrastructure, especially if they can get everything they want on shared infrastructure that’s highly flexible and customizable, the way Visage had envisioned. The Visage MVNO enabling concept could help a lot of people get to market faster and for a lot less. Building a company for the sole purpose of enabling MVNOs really made a lot of sense to me. In early 2002, I joined Visage, the VC invested in the company, and several rounds later the company is doing quite well. I was there for more than three years.

Visage Mobile had one commercial launch last year, is launching several more MVNOs this year, and is doing quite well - but doesn’t need someone like me anymore. Visage is operational, and I’m an early stage, start-up guy. It has a great team, experienced people that know how to run a carrier-class operation. That’s why Visage is the leader in that space. Even while at Visage--with their full approval--I was informally advising young companies that were complementary to what Visage was doing. I worked with one company that was developing Java and Brew applications for health care, and another company that was working on wireless sensors for automotive apps. I was having fun with these young companies and doing the start up thing again, so I left Visage early this year.

Now I’m working with 10 companies--most of them in the wireless space. They’re all pre-IPO companies--some of them are very early stage, but most of them have some funding.

I’ve always worked with small businesses and young companies, and helped them grow. My Dad was a successful small businessman. When I got out of law school, I worked with several non-profits and new businesses, incorporating them and helping them start their businesses. I joined MCI in 1982, working in corporate development. At the time, MCI had won the AT&T antitrust case, with an outstanding judgment of $1.8 billion due, but on appeal --back when that was a lot of money. So back then, MCI’s corporate development group was launching many new, exciting initiatives. Bob Harcharik and Vint Cerf were there starting MCI Mail, we had acquired Western Union International, including it’s paging and mobile unit, AirSignal, and used that as a platform to start the cellular business. The corporate development group was an incubator for all kinds of very exciting new businesses. It was led by Brian Thompson and Jerry Taylor, Jerry was the third (or fourth) employee of MCI, and was McGowan’s protégé. All those people knew how to do was build businesses. All they knew how to do was start with nothing and build it into something.

So I really learned from the very best at MCI. Every time there was a new business, a new unit or a new initiative, I was always out there doing it. Most people like the comfort, salary and benefits of working in a big company--you’d be crazy if you didn’t--but it’s boring. What I love to do and what I found early on that I excel at, is figuring out how to take a young company and build relationships that are going to help it grow faster. I love to build those kinds of relationships. It’s what I enjoy the most, and what I learned from the best to do.

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