Friday, September 28, 2007

Disney Mobile phone service comes to an end

Walt Disney Co. said Thursday that it would stop its Disney Mobile phone service at the end of the year and also end sales immediately, the second time in a year that the huge conglomerate has orchestrated a quick closing of a cellphone operation. Earlier it shutdown Mobile ESPN another niche offering. illustrates the challenges of competing with national wireless carriers that own their networks.
Disney, like many other so-called mobile virtual network operators, leased network capacity from one of the major carriers -- Sprint Nextel Corp., in Disney's case.
More the reason those upcoming spectrum's be open and sold with requirements set out by FCC. No wonder Verizon does not like it.

The service had been targeted at the communications needs of families and children, offering features designed to enable parents to know where their children are and help youths learn to use cellphones responsibly, and of course to make money with it's popular brand.
The phones were equipped to display the location of a user's handset on a map, limit when and how the phone was used and set limits on expenditures.

The company said it became clear it would have to invest far more in the product to boost sales than could be justified. Exclusive deals cut between large retailers and mobile carriers made it too hard for Disney to get its product in front of customers, the company said.

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