Report: Is Zer01 Mobile too good to be true?

The offer that MVNE Zer01 Mobile is peddling may be too good to be true, according to a Network World article that raises a number of questions about the company's business practices and technology offering.

Earlier this month Zer01 Mobile said it would launch a mobile virtual network enabler service that could support unlimited wireless voice and data service via mobile VoIP technology running over an unnamed carrier's GSM network. At the time, the company said it expected to begin signing up a number of distributors for its service, and those resellers would then retail the offering to end users.

However, the Network World article questions many of the company's claims, and highlights the convoluted nature of its business setup. According to the article, neither AT&T Mobility or T-Mobile USA (the two nationwide U.S. GSM carriers) have a relationship with the company.

Buzzirk Mobile appears to be the primary distributor for the service. The firm is owned by Global Verge, and the CEO of that company is on probation after pleading guilty to securities fraud. He was not available to comment, according to the Network World article. Further, according to Zer01 CEO Ben Piilani, Global Verge has signed up 50,000 associates to sell the company's wireless service, although that number was difficult to confirm. The article also said that sales associates pay $70 become part of the program and $40 a month for back-office support.

For more:
- see this Network World article [1]

Related Articles:
Zer01 goes nationwide with unlimited voice, data service [2]
New MVNO offers unlimited voice and data for $70 per month [3]
VoIP secret sauce for MVNO Zer01 Mobile [4]