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Ad-Funded MVNO Closes-Down in the UK

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Another UK based MVNO has closed shop, citing higher than viable mobile data costs from its wholesale provider.

SIM-only MVNO, Samba Mobile offered advertising-funded mobile data services to customers, although it charged for the SIM Cards themselves.

After the initial data allowance was used, customers had access to free broadband in return for watching brief adverts online.

Customers could also top-up their ad-free access.

In a statement on its website, the company said that it is closing "principally due to the high cost of wholesale data. This makes the current model of offering a meaningful value exchange of mobile broadband unsustainable."

Around 2,000 customers are expected to have been cut-off by the shut-down. The company bought its wholesale access from Hutchison 3G UK.

Samba Mobile's closure follows the recent shut-down of Ovivo, and the first mover, Blyk, which closed down after failing to raise enough advertising income to cover costs.

On the web: Samba Mobile

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Tags: samba mobile  mvno  mobile advertising  UK