cool.Prepaid MVNO having troubles

As we reported last week, another prepaid MVNO called cool.Prepaid entered the market running on Cingular's network and offering Motorola's RAZR V3 handsets. Reports are circling the Internet today that Motorola has rescinded its agreement to provide handsets for subscribers to the MVNO and, we assume, the negotiations to have Motorola help cool.Prepaid bring iRadio services to its customers are also over.

While we can only speculate as to the reasons for Motorola's decision, a reader tipped us off to some information regarding cool.Prepaid's CEO's previous ventures in the wireless space. In 2003, cool.Prepaid Chairman and CEO Marvin Jemal and former colleagues Stephen Jemal and Jacob Dresdner agreed to pay $85,000 in fines for making false and unsubstantiated claims about cell phone radiation products. Their company sold "shields" for $49.99 that protected people from cell phones' electromagnetic energy.

For more on cool.Prepaid:
- see this blog entry
- and this older article from about the $85,000 fine