June 9, 2006

Xero Mobile has yet to launch its advertising-based mobile virtual network operator service in the United States, but that isn’t keeping the company from offering up its business model for partnerships with telecom companies abroad.

“While our focus remains resolutely on our U.S. launch in January 2007, we have already received expressions of interest from companies in several countries who wish to work with us to launch Xero locally,” said Roger Davis, Xero Mobile’s president.

So Xero—which plans to give away up to 5 million handsets to U.S. college students and then subsidize their wireless bills by pushing video advertisements to their handsets—said it will allow MVNOs and carriers around the world to use its infrastructure and business concept.

Xero said it “owns and has licenses for the technology, IP and expertise necessary to deploy this model in multiple countries.”

Meanwhile, Virgin Mobile USA L.L.C. has already put a mobile advertising service into play.

The company recently launched “Sugar Mama,” which allows users to opt-in to get video clip advertisements or marketing surveys on their computers or text messages on their phones in exchange for free talk time.

Source: RCR