Regional flat-rate CDMA operator Revol Wireless announced it is going out of business. The carrier said it has stopped taking payments and will no longer provide service starting Jan. 16.
The carrier said Sprint (NYSE:S) prepaid brand Boost Mobile will be offering Revol customers a special offer of a free phone and free month of service if they switch to Boost by Dec. 24. Further, some local dealers who were Revol retailers elected to change to Boost Mobile retail outlets. A Boost representative pointed out however that Boost itself is not specifically picking up Revol customers; instead, a local Revol dealer decided to switch from Revol to Boost.
"Thank you for your business. You have been a valued customer," Revol said in a note on its website.
It's unclear exactly what is happening to Revol's employees and CDMA wireless network. Company representatives have repeatedly declined to respond to questions from FierceWireless.
Last month Sprint purchased 12 PCS spectrum licenses from Revol in the Ohio area. The news came shortly after Revol confirmed to Crain's Cleveland Business that it had shut down around half of its stores in the Cleveland, Columbus and Indianapolis areas, leaving around 20 stores operational.
"It's a competitive environment," Revol CEO Timothy Yager told the publication. "I wish it was a little less competitive."
Revol's creditors took over the regional carrier in 2011 when it was unable to make payments on $150 million in debt. At that time Revol's creditors brought in a new management, including Yager, to run the carrier.
Revol is one of a number of smaller wireless carriers struggling to compete against massive, nationwide carriers like AT&T Mobility and Verizon Wireless (NYSE:VZ). Indeed, the wireless industry has been engulfed during the past few years in massive consolidation: Sprint has acquired Clearwire, T-Mobile US (NYSE:TMUS) acquired MetroPCS and AT&T is working to acquire Leap Wireless (NASDAQ:LEAP).
- see this Revol page
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Article updated Jan. 1 to clarify the relationship between Revol and Boost.