News
Disney MVNO to close
Stuart O'Brien Sep 28 2007, 9:45am
The Mouse throws in MVNO towel as costs spiral for US venture.
Proving that the branded MVNO may be a Mickey Mouse proposition after all, in the US at least, Disney has announced its mobile service will close at the end of this year.
The company blamed tough market conditions for the decision, which comes just 12 months after it swallowed a $30 million hit when sister-MVNO ESPN Mobile closed for similar reasons. It also follows the spectacular implosion of rival MVNO Amp'd this summer.
In a statement, Disney said: "The MVNO model has proven, as we’ve seen with other companies this past year, to be a difficult proposition in the hyper-competitive US mobile phone market.
In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."
Disney will now focus mobile efforts on its Family Center service, which it will offer through an as yet unnamed operator partner. The service can show parents the location of a child’s handset on a map, limits when and how the child’s phone is used and sets restrictions on voice and data expenditure.
