Thursday, August 13, 2009

Zer01 Mobile dissolves relationship with Buzzirk Mobile/Global Verge

Due To Breach Of Contract, MVNE Zer01 Mobile Cuts All Ties With Buzzirk Mobile For Distribution Services

Facing serious questions about the validity of their service Zer01 Mobile has moved to distance themselves from Buzzirk Mobile and Global Verge.

Earlier this week we reported that Zer01 mobile was facing tough question reguarding their relation with Buzzirk Mobile and Global Verge who's CEO, Mark ,is reportedly currently on probation after pleading guilty to securities fraud.

In a press statement released today Zer01 Mobile announced that it is formally dissolving its business relationship with Buzzirk Mobile for distribution services based upon breach of contract. The agreement for distribution services was originally announced in May 2009. However, due to violations of the agreement made by Buzzirk Mobile, Zer01 Mobile has concluded as of today its relationship with Buzzirk Mobile.

"The Zer01 Mobile team wishes Buzzirk Mobile the best of luck for all future endeavors. However, Zer01 Mobile has decided to formally sever our business relationship due to the breach of contract by Buzzirk Mobile," explained Lance Dascotte, COO, Zer01 Mobile.

Creating interconnect agreements throughout North America and abroad, Zer01 Mobile is the first mobile service to offer a truly unlimited voice, data and Internet plan that is priced affordably with taxes and fees included. Zer01 Mobile's international plan also reaches out to the most popular calling countries around the world and is also economically priced. The company has licensed patent pending proprietary VMC technology that allows each smart phone user to make voice calls or transmit data by sending voice communications through a VoIP system.

During the three-month business relationship between Zer01 Mobile and Buzzirk Mobile, questions by the general public and journalists were raised about the business agreement and Buzzirk Mobile's ability as a distributor. "Overall, there were a number of news articles and blogs that misreported a lot of the facts about each company and its services," commented Ron Dresner, Zer01 Mobile spokesperson. First, Zer01 Mobile and Buzzirk Mobile are two very separate and distinct companies, only joined by this now dissolved agreement. Previous reports erred in applying facts about the questionable background of Buzzirk Mobile executives to Zer01 Mobile team members; Second, industry ‘insiders' commented about the new Zer01 Mobile service stating their doubts about the credibility of the service because no details about the interconnect agreements were released. From the start, Zer01 Mobile stated that it needed to protect and honor the confidentiality of its business partners and could not release this information. It has invited any and all industry ‘insiders' to visit with Zer01 Mobile at any of the upcoming industry conferences and use a Zer01 Mobile phone; Third, Zer01 Mobile has never promoted or mentioned facts regarding its service that were misleading. News reports specifically quoted Buzzirk Mobile sales associates sources as to communication speed rates and frequencies; and fourth, questions about Zer01 Mobile's patent pending technology in the news are totally unfounded and motivated by marketplace competitors. Any visit to the patent office will prove Zer01 Mobile's VMC technology registration."

"We hope that our actions and statements put many concerns to rest. We believe that statements made publicly about the nature of our relationship with certain entities and the legitimacy of our mobile products by certain third parties are erroneous and untrue and are not based upon sufficient knowledge of the facts involved. Currently, our counsel is in the process of preparing a response to these false and misleading statements. Our company reserves all its legal rights and remedies that may arise from any and all erroneous and untrue statements made by third parties. We consider the reputation and integrity of Zer01 Mobile to be of utmost importance to our future success and we intend to vigilantly defend it," concluded Dascotte.

My thoughts:

This might come too little too late for a company whose reputation has already come into question. While the move does help easy some of the questions it doesn't alleviate most of the major concerns. Mainly those about about Zer01’s network and whether it can offer the coverage it promises. The company says it has interconnect arrangements with GSM providers yet refuses to report who they are. AT&T denied to reports that they have any agreements with Zer01, and as of yet T-Mobile has declined to comment.

Personally I'd like to see some of the questions and concerns answered before I jump back on the companies bandwagon. I like their approach and would really like to see things work out for them, but right now there are just too many unanswered questions.

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