Flat Wireless has decided that it will discontinue its wireless service operations in small markets across the states of Arizona, California, and Texas. The mobile operator currently offers wireless services under the ClearTalk brand, but since it is planning to soon throw in the towel, it will become a dealer of Boost Mobile, the prepaid service provider owned by major national carrier Sprint.
As explained by Kevin Beierschmitt, the chief executive officer of Flat Wireless, any company who enters into the prepaid wireless service business should always have enough financial assets and a compelling enough objective to continuously motivate itself to soldier. Unfortunately for Flat Wireless, its resources and options have just about run out.
Beierschmitt did express his desire to shift the ClearTalk’s brand into a different focus, and preferably one that should allow the company’s stakeholders to reap some returns. Also, the CEO is hoping to get the opportunity to allow some key personnel to continue working for the new direction, whatever it may be.
According to Beierschmitt, the prepaid wireless market has increasingly become super competitive in the last few years, especially in the wake of acquisitions of prepaid brands completed by some members of the Big Four. He cited AT&T’s acquisition of Cricket Wireless provider Leap Wireless and T-Mobile’s acquisition of the MetroPCS service.
Beierschmitt further added that without those two CDMA carriers, mobile devices had become not only more difficult to acquire, but also more challenging and more costly to program to Flat Wireless’ needs. The CEO also described experiencing some slow progress when it comes to negotiating with the Big Four carriers for reasonable roaming rates, with the Federal Communications Commission (FCC) managing to only offer minimal assistance in the matter.
All of the factors mentioned above have helped lead Flat Wireless to sell off majority of its spectrum assets. Furthermore, the mobile operator is now looking to shift its ClearTalk retail operations into retail outlets that sell Sprint’s Boost Mobile prepaid offerings. On top of that, the carrier is also planning to repurpose a few of its network and spectrum resources in order to generate earnings out of roaming services.
About three weeks ago, ClearTalk had announced that it was shutting down its wireless service, and was even planning to funnel its existing customers to prepaid carrier Boost Mobile by offering users who are willing to switch Android powered mobile devices, free of charge, or an iPhone 6 for only fifty bucks.
