Verizon reseller Millenicom to pass customers off to Verizon, explore energy coil

Millenicom, a mobile Internet provider that has resold Verizon Wireless (NYSE: VZ) service, is ceasing its relationship with Verizon and its operations as a service provider. Verizon is proactively looking to keep serving Millenicom customers but is not acquiring them directly. Meanwhile, Millenicom's owner said that the company has invented an "energy coil" and wants to use it to deliver services to the energy and telecoms sectors.

Dennis Castle, Millenicom's owner, noted that the company was not a Verizon MVNO but rather "went through a gateway to provide Verizon service."

Earlier this month, Millenicom sent a message to customers that said Verizon may be contacting them about options to keep their service active, and that going forward customers would have a direct relationship with Verizon. "Millenicom will no longer have any role concerning your account and Millenicom does not now or will have any relationship with Verizon Wireless," the message said, according to several reports, which were confirmed by Castle. "Thank you and we apologize for any inconvenience this notice may cause."

"If the customers wish to continue service after Oct. 31 they will need to respond to Verizon when they reach out to them during the next week," Castle told FierceWireless. It's unclear how many customers Millenicom had. Castle did not immediately respond to a request for comment on the figure.

"[Verizon] has made it clear to us that it is their desire to maintain service to all of the customers and will be contacting them as soon as they are ready to present their available options," Castle said.

"The plans sold by Millenicom will no longer be supported by Verizon Wireless," Verizon spokesman David Samberg told FierceWireless. "Verizon is in the process of identifying and contacting affected customers this week, and will work with them to avoid disruption of service." He said Verizon would soon have a phone number customers could call for more information. Samberg declined to comment on why Millenicom's plans will no longer be supported by Verizon.

Millenicom offered three no-contract plans. One was for a 3G/LTE mobile hotspot that offered  20 GB of data for $90 per month. That plan required customers to purchase a $100 device, pay a $50 activation fee and a $15 shipping fee as well as the prorated balance of the first month service. The second was for a $400 16 GB iPad mini with Retina display, and the plan offered 6.5 GB of LTE data for $60 per month and unlimited non-LTE data after 6.5 GB. Customers were required to pay a $50 activation fee and a $15 shipping fee. Millenicom also sold a $500 16 GB iPad Air and the plan offered 6.5 GB of LTE data for $60 per month and unlimited non-LTE after 6.5 GB. Customers were required to pay a $50 activation fee and a $15 shipping fee.

Castle said that Millenicom's next steps involve something far different than reselling wireless service. "We have invented an energy coil that interacts with static electricity," he said. "We are testing it out in a 50,000-square-foot factory in Pennsauken, N.J., next month and will be updating our findings on our revised website which should be available soon." He said the company hopes to have a report completed on those tests by the end of 2014.

"We have high hopes of being able to generate deliverable services impacting mobile connectivity and energy and are aiming at Q3 2015 to reengage the marketplace," Castle said.

"We have many hopes and dreams for the new direction we are going, however this is dependent on the results of our tests which begin next month," Castle added. "We will have regular updates on our progress once our site is updated."

For more:
- see this RV Mobile Internet article

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