The tough competition got to Disney Mobile

Sep 28, 2007 09:08 GMT  ·  By

The Walt Disney Internet Group (WDIG) made official its decision of putting an end to the operations of its mobile virtual network (MVNO) phone service at the end of this year. The company intends to focus its attention towards the development of a suite that offers parents greater control over their children's mobile phone use.

Disney has already made its plans for the future. The company will shop major U.S carriers for a new home for its Family Center feature package. This includes a GPS locator service as well as web and handset tools that allow parents to set usage and time limits on calls, texting and downloads for their children.

Disney's service was a useful one, but not mature enough to stand the huge competition in the telecom area. "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. In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area", commented Steve Wadsworth, president of the Walt Disney Internet Group.

Still, their intention was that of bringing families a solution for staying connected even with the little ones, as this is highly useful, many times. "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", he also said.

The Walt Disney Internet Group will continue to provide its services to current customers until the end of the year. The company plans on offering a reimbursement program for eligible customers, according to a program that will be presented before the 8th of October. More information is available at the company's website, www.DisneyMobile.com.