The buzz about the rumored unveiling of another new Mobile Virtual Network Operator (MVNO) heats up again with a brief report from the Financial Times on Xero Mobile. A story straight out of Hollywood, California -- three former Gizmondo Execs plan to launch a free mobile service dubbed Xero Mobile that is subsized by mobile advertisements.

Advertising on cell phones has been a hot topic lately in the mobile space -- being spurned on by the big U.S carriers Sprint Nextel (testing video ads) and Verizon Wireless to help subsidize mobile content offerings that (along with MVNO deals) can pay for the billions of dollars sunk into Ev-DO network build-outs in 2006.

The initial rumors on funding for Xero Mobile were pegged at $300M with startup costs estimated to be $92 million for launch. The payoff that catches the eye of investors -- a cool $1.8 billion estimated to be returned within 3 years. Given the fact that mobile advertising is virtually an untapped market with serious upside potential, Xero Mobile may be on to something here.

[via thealarmclock]

Posted by mobilemodo at 10:43 AM | Permalink Posted to News | Rumors | XeroMobile

Another day another MVNO that is now in the Works. This time it is not the Kajeet Mobile that we having been watching, but another contender by the name of XeroMobile vying for the Helio (youth focused 3G on Verizon's network) crowd.

Andy over at VoIPwatch blog reported --

A hat trick reader told me about a new Los Angeles based MVNO about to come out of stealth mode named XeroMobile. My source tells me they raised about 300 million dollars, mostly from Europe. They are a likely contender to Helio in the newcomer space and will more than likely want to be in the 3G/VoIP/WiFi space that Google, FON and Boingo are all playing in.

The competition to provide mobile phone services outside the traditional bubble of Verizon, Cingular, Sprint Nextel and T-Mobile has created a market that is ripe for explosion in 2006.

Posted by mobilemodo at 01:41 PM | Permalink Posted to News | Rumors | XeroMobile