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Zer01 Parent Strips Web Site Following Report

alphadogg writes "Two days after a report cast doubt on Zer01 Mobile's business, its parent company has stripped its Web site down to only basic information. New details have also come to light suggesting a past connection between two of the involved companies, despite claims to the contrary. Earlier this week IDG News Service reported that it's unlikely that Zer01 could be technically able to offer the unlimited mobile voice and data service that it is advertising. The service, originally targeted for a July 1 launch, does not appear to be available yet. In addition, it's being marketed through a multilevel marketing program run by a company called Global Verge whose founder, Mark Petschel, in 2005 pleaded guilty to securities fraud. Petschel is currently on probation."

10 of 95 comments (clear)

  1. Re:Lot's of push by inhuman_4 · · Score: 2, Insightful

    I'm not going to talk people I know or legitimate customers of mine into something that over promises and under delivers.

    So I take it you don't operate in Canada then?

    Cell phones with poor reception, expensive data plans, charging for received SMS messages. A proud part of our Canadian heritage (cue music).

  2. Greasy definition of "unlimited" by indytx · · Score: 5, Insightful

    Earlier this week IDG News Service reported that it's unlikely that Zer01 could be technically able to offer the unlimited mobile voice and data service that it is advertising.

    If you mean unlimited in the sense that they wouldn't cap your usage, sure they could do this. If you mean unlimited, usable voice and data, that's another thing entirely. They could call it "unlimited" but not have the bandwidth to deliver a decent, or even functional, user experience.

    Sure we need consumer protections, but a healthy dose of caveat emptor is never a bad thing. If the service contract says "unlimited," and it ends up being unlimited 2400 baud data, that's still unlimited. Chickens**t, but still unlimited.

    --
    Make love, not reality television.
  3. Re:Buyer Beware by am+2k · · Score: 5, Insightful

    Uh, here in central Europe (Austria) I'm paying EUR 19.50 per month for virtually unlimited voice and data (1000min/month and 3GB/month, both of which I can never reach). Something is seriously wrong over there on your side.

  4. Re:Buyer Beware by Anonymous Coward · · Score: 2, Insightful

    Believe me, we're not oblivious to that fact. :|

  5. Re:Buyer Beware by Anonymous Coward · · Score: 1, Insightful

    Uh, here in central Europe (Austria) I'm paying EUR 19.50 per month for virtually unlimited voice and data (1000min/month and 3GB/month, both of which I can never reach). Something is seriously wrong over there on your side.

    Unlimited data is not unusual, I have it now with my cellular company. What this company was claiming was the ability to download 5GB of data in under 5 minutes over a cell phone. The hardware restrictions alone make this physically impossible.
    So they weren't advertising just unlimited data but virtually unlimited bandwidth. If you read up on these guys you will quickly see that this was all a scam from day one.

  6. Re:Buyer Beware by fuzzyfuzzyfungus · · Score: 5, Insightful

    Was it still good entertainment when you got to bail them out?

  7. Re:Buyer Beware by Anonymous Coward · · Score: 2, Insightful

    While that would be amazing here, consider its for your population dense coverage area. (e.g. whats the roaming like?)

    I would also never put the word "unlimited" near 1000 minutes or 3 GB/mo.

    The 5GB limit (where huge overage starts) that many plans here have is not hard to reach at all with any kind of media use beyond web pages, considering that in good metro areas speeds are almost always in the megabits.

  8. Re:Don't panic yet by mcgrew · · Score: 3, Insightful

    Just because it looks like a huge Pump and Dump red flag doesn't mean we have to assume that Zer01 is just out to bilk out customers of their money with promises of service that just can't be delivered.

    If the fact that the guy running the show is on probation for fraud doesn't make you run like hell, I don't know what would. I'm willing to give anyone the benefit of the doubt, but there's little doubt to give him the benefit of. He shouldn't even be in the business with his record.

  9. Re:Buyer Beware by Anonymous Coward · · Score: 1, Insightful

    so not offering the mountain population service is not an option.

    The Austrian mountains are full of ski resorts, and ski resorts are full of skiers with mobile phones paying two lots of international roaming charges (one for the caller, one for the receiver) to phone each other up to ask "Where are you?".

    I imagine base stations in the mountains are quite profitable.

  10. Re:Buyer Beware by humphrm · · Score: 4, Insightful

    Yes. At least in the US, the legal differentiation of a Pyramid scheme and an MLM is whether or not the company has a product to sell. Even if all the analysis indicating that this type of service at this price is not technically feasible is correct, they do not yet offer the service, ergo it is a Pyramid scheme. The courts have been very clear on this. Offering a "future service" doesn't cut it, if you want to operate an MLM you must have a product, not vapor.

    So yes, it's a pyramid scheme.

    --
    -- "In order to have power, I must be taken seriously." -Mojo Jojo