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Disney to scrap UK mobile plans?

Disney is reported to have frozen launch plans for its UK mobile virtual network operator (MVNO) after a weak start from its US operation and increasing concerns in the UK market.

Disney, along with a number of other MVNOs such as Amp’d Mobile and Earthlink’s Helio, made much-hyped launches earlier this year in the US but are largely struggling to reach their target customer numbers.

In May, Bob Iger, president and chief executive of Disney, commented that the initial results for the ESPN back MVNO venture in the US “were a little bit lower than we had hoped” causing the company to change its pricing approach.

Not much was said on the proposed launch of the UK operation when Disney announced its latest figures last week but the company, which has already got Telefonica’s O2 signed up as a network partner, said only that it “will keep one eye on the landscape” over the launch the UK service.

While consolidation amongst retailers in the UK has increased competition for the company in the MVNO market, Disney has also been weathering concerns from its target audience over plans to market mobile phones to young children.

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