It’s Official: Mobile ESPN To Cease MVNO Ops Dec. 31; Will Seek Licensing
The announcement we told you last night was on the way just came out ... Mobile ESPN will cease operations as an MVNO Dec. 31 and will refund the purchase price of all Mobile ESPN handsets. Sales are discontinued effective immediately. Instead of operating its own phone service, which never achieved anything close to critical mass, ESPN will pursue a licensing model for its pioneering navigation/content model.
From the press release: Salil Mehta, executive vice president, ESPN Enterprises: “Our MVNO effort created a tremendous wireless asset widely recognized for quality and innovation, and as a result we have been approached by well-entrenched carriers about a licensing model. We have decided to pursue it. ... With a redefined approach we have a greater opportunity to reach millions of fans while achieving our strategic and financial goals.”
From the internal memo sent by ESPN head George Bodenheimer, posted on DeadSpin: “As the business developed, we confronted a very competitive sales environment for our MVNO while at the same time attracting significant interest from others to license distribution of Mobile ESPN. Taking all of this into account and after careful consideration, we have decided to change direction and turn Mobile ESPN into a licensed wireless application to be offered by one or more major national carriers. This shift will allow us to get Mobile ESPN’s critically acclaimed content to many more fans much more quickly.”
More to come.
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