Is Zer01 Crashing?

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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Is Zer01 Crashing?

The deal that was supposed to save VOX Corp. (parent company is Pervasip). After Networld World questioned whether the mobile VoIP service could actually work, the company stripped data from its website (as reported by both PC World and Network World).

PC World further reported, "Earlier this week IDG News Service reported that it's unlikely that Zer01 could be technically able to offer the unlimited mobile voice and data service that it is advertising. The service, originally targeted for a July 1 launch, does not appear to be available yet. In addition, it's being marketed through a multilevel marketing program run by a company called Global Verge whose founder, Mark Petschel, in 2005 pleaded guilty to securities fraud. Petschel is currently on probation."

The other issue being raised is that the MLM program has more questions than answers. When Lightyear is selling cellular via MLM, you at least have a very clear picture of who the parent company is and other company transparencies. That is not the case with the Zer01 MLM program. Again PC World, "It's not the only related Web site that has changed since the original report on Monday. The Web site for UTG no longer features executive bios, company addresses, some previously provided telephone numbers or links to related companies such as Yorkshire Investments or the Yorkshire Foundation."  And it goes on and on with PC World checking up on UTG facts. The Consumerist has a diagram of the MLM program.

Even Engadget points out that Zer01 will be undercutting its own MVNO partner - a losing strategy if ever there was one - and using VoIP on AT&T's 3G network, that has already seen issues from too much iPhone traffic, let alone VoIP calls streaming and tunnelling through its network.

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