T-Mobile (NYSE:TMUS) isn't saying how many direct new customers it gained following the collapse of the MVNO Solavei last week.
Often described as a multi-level marketing mobile services provider, Solavei launched in 2012 offering a $49 unlimited talk, text and data plan. The company used T-Mobile's network and operated a referral program that gave Visa PayCard accounts to customers who enticed others to sign on to Solavei's service.
Investors reportedly valued the company at $120 million in 2013 as the company grew to 140 employees. The company claimed it paid out more than $35 million in commissions to customers.
But Solavei declared bankruptcy in May 2014 because it wasn't able to score enough customers. At the time of its bankruptcy filing, the company counted roughly 100,000 customers. Then earlier this year Solavei announced plans to reorganize and merge with ASPIDER, a Netherlands-based company that provides Infrastructure as a Service (IaaS). But T-Mobile said in November that it had terminated its agreement with Solavei because the MVNO's service didn't meet expectations. Solavei discontinued its service Dec. 4.
Solavei claims it served more than 400,000 users during its lifespan, although it isn't known how many were active when service was killed.
T-Mobile offered Solavei users a $10 monthly credit plus a free month of service to migrate to the network operator following Solavei's shutdown. A T-Mobile spokesperson said the company can't comment on how many users took the carrier up on the offer.
Solavei was founded by Ryan Wuerch, who also served as CEO. Wuerch also founded the company that became Motricity, a mobile content services provider that racked up $405 million in funding before filing for a $250 million IPO in 2010.
For more:
- see this Solavei notice
- see this GeekWire article
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