"And now its time to say goodbye..." at least for the time being, to the Disney-branded mobile phone offering released back in April of 2006. The Disney phone service offers a family mobile phone package including limited access to the Internet and the ability for parents to reach their child at any time.

 

Walt Disney Internet Group has announced they will cease operations of the US-based mobile virtual network (MVNO) phone service to "explore a new business model for its content and services."

While the phone service received both praise and criticism, Steve Wadsworth, president of the Walt Disney Internet Group commented, "Our feedback from customers and critics from the beginning has been that we exceeded the mark in that respect. However, the MVNO model has proven, as we've seen with other companies this past year, to be a difficult proposition in the hyper-competitive U.S. mobile phone market. In assessing our business model, we decided that changing strategies was a better alternative to pursue profitable growth in the mobile services area."

According to a news release the new direction of the company's business model may include offering its Family Center product through a partnership with a major U.S. carrier.

 

With the Family Center suite it's possible to see the location of a child's handset, limit when and how a child's phone is used and set limits on voice and data expenditures.

 

"It's been clear since we launched the MVNO that we were offering something both unique and useful for families that wanted to provide their kids with a mobile phone with suitable content and features while retaining a measure of control on how and when it would be used."

 

Current customers will receive support until December 31, 2007 and eligible customers will be offered a reimbursement program.