MVNO Xero to test ad-supported service soon

Xero, the MVNO that aims to launch an ad-supported service and has drawn the SEC's attention, says it has begun testing its service in anticipation of a January 2007 launch. The MVNO plans to market to college students with free handsets and low service costs, offset by TV-style video ads on its phones. According to a report in RCR News, the company will "use patent-pending video composition and compression techniques to deliver high-quality video advertising at substantially lower costs than existing download and streaming solutions." Xero will also use "real-time reverse billing" to grant subs air time credits after they watch the ads. Advanced Mobile Communications recently agreed to acquire the MVNO for newly issued shares of stock.

For more on Xero's plans:
- see this article from RCR News