Walt Disney has announced that it would stop its US based mobile virtual network (MVNO) phone service at the end of the year and will instead explore a new business model to offer its wireless content and services through a partnership with a major US carrier.

Steve Wadsworth, president of the Walt Disney Internet Group said “It’s been clear since we launched the MVNO that we were offering something both unique and useful for families that wanted to provide their kids with a mobile phone with suitable content and features while retaining a measure of control on how and when it would be used.”

“Our feedback from customers and critics from the beginning has been that we exceeded the mark in that respect,” Wadsworth said.

“Customers liked the product that allowed parents to determine the location of a child carrying a phone, but that it was having problems getting the phone into large retailers,” the company told AP.

Apparently, exclusive deals between mobile carriers and large retailers made it difficult for Disney to get its product in front of customers.

Wadsworth disclosed that changing strategies may offer better alternative to pursue profitable growth in the mobile services area.

The company will end sales immediately. Existing MVNO customers, however, will continue to receive service and support until Dec. 31, 2007.

Likewise, the company plans to offer reimbursement program for eligible customers. Details of the reimbursement program is yet to be announced, but is expected to be release early next month.

Related:

Entry was posted on Thursday, September 27th, 2007 at 10:58 pm under Cell phones, Technology.

Read more entries by Ruben Francia.
Stumble It!