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Disney to End Mobile Phone Service

Sep 28, 2007

The Walt Disney Internet Group plans on ceasing operations of its Disney Mobile MVNO wireless phone service the end of the year. Disney says it plans to explore a new business model for its content and services, including possibly offering its Family Center product through a partnership with a major U.S. carrier.

Disney's Family Center suite allows users to limit when and how a child's phone is used and to set limits on expenditures in terms of voice and data. It also can display the location of a child's handset on a map.

"The MVNO model has proven, as we've seen with other companies this past year, to be a difficult proposition in the hyper-competitive U.S. mobile phone market," Steve Wadsworth, president of the Walt Disney Internet Group, said in a statement. "In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

Current Disney MVNO customers will continue to receive service and support until Dec. 31, 2007. The company has said it will offer a reimbursement program for eligible customers.


 

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