Movida Communications

About Movida Communications

Movida Communications, Inc. was established in 2005 as a Mobile Virtual Network Operator (MVNO) with a specific focus on the U.S. Hispanic market. The company, headquartered in Miami, Florida, and later with operations in Kansas City, was founded to address the underserved wireless needs of the more than 40 million Hispanics in the United States at the time. Its business model centered on offering pay-as-you-go wireless voice and data services, a popular format in Latin America, by utilizing Sprint's nationwide PCS network.

The company's strategy involved creating strong alliances from its inception, teaming up with major players like the Cisneros Group of Companies as its primary investor, Sprint for network infrastructure, and Wal-Mart for retail distribution. This allowed Movida to sell its branded handsets and service cards in select Wal-Mart stores and other major retailers across the country. Anthony V. Montoya served as the President of Movida, articulating the company's mission to connect Hispanic consumers with their culture and families through tailored products. The services were designed to be culturally relevant, offered primarily in Spanish, and included a suite of international voice and data services with competitive calling rates to countries like Mexico.

Despite initial growth, reaching over 267,000 customers and employing 75 people by early 2008, Movida faced significant challenges. The company struggled with increased industry competition and what it described as a "costly and restrictive" MVNO agreement with Sprint. This prevented Movida from competing with the aggressive handset price reductions offered by rivals, impairing its ability to attract new customers. After a failed attempt to renegotiate terms with Sprint, Movida Communications filed for Chapter 11 bankruptcy in April 2008. Shortly after, the company and its assets were acquired by APC Wireless, which aimed to continue the Movida brand while revamping its operational strategy.