XE Mobile: Another MVNO down and out: Firm joins growing number of flameouts

The latest casualty in the mobile virtual network operator (MVNO) space is XE Mobile, which targeted college-age youth and marketed itself as a hip, provocative alternative to traditional carriers with an affinity program and cheap long-distance calling.
According to a message on the pay-as-you-go MVNO’s Web site, XE will be shutting down its operations at the end of the year. All of its customers’ account balances will expire on Dec. 31.
Calls to XE Mobile’s main office did not connect.
XE Mobile launched in late 2006 and ran on AT&T Mobility’s network. The company offered free incoming text messages on all its plans, with per-minute calling costs ranging from 10 cents to 20 cents per minute.
XE also offered its customers free membership in a student shopping program, which provided discounts at retailers such as Urban Outfitters, Foot Locker, Barnes and Noble, Target and others. The MVNO also hooked up with MobileSphere to offer inexpensive long-distance rates to students.
XE had distribution deals with CompUSA and Office Depot, trying to catch customers as they shopped for school supplies. The MVNO offered handsets from companies including Nokia Corp., Motorola Inc. and Sony Ericsson Mobile Communications L.P., including Sony Ericsson’s W300 Walkman handset.
Other stores that distributed XE’s wares included Meijer and Trans World Entertainment locations; XE said at one point that its phones and service were available at more than 3,500 retail stores around the country.
XE Mobile joins Disney Mobile, Mobile ESPN and Amp’d Mobile Inc. in the MVNO graveyard.