Flat Wireless Shutting Down Due to Tough Competition

  • cleartalk-flat-wireless-shut-down

    Flat Wireless, a regional mobile operator, has some bad news.

    Earlier today, the company announced that it will be shutting down its commercial wireless network and will be turning into a Boost Mobile dealer. Flat Wireless sell its services under the brand, ClearTalk.

    Kevin Beierschmitt, the CEO of Flat Wireless, explained that this decision comes from his lack of funds to continue operating the business. In order to keep the business afloat, the CEO intends to switch things around in the business. At the same time, the CEO hopes he could retain a number of employees.

    There’s no secret about the tough competition among players in the prepaid wireless sector. Ever since AT&T acquired Leap Wireless (from Cricket) and T-Mobile acquired MetroPCS, things have been extremely hard for the smaller brands.

    The competitiveness in the prepaid wireless space has led Flat Wireless to sell off its spectrum holdings and turn its retail operations into retail stores where customers can purchase Sprint’s Boost Mobile prepaid service. In the long run, Beierschmitt plans to redeploy some of its network assets and spectrum so it can obtain revenues from roaming services.

    With this announcement, the areas that will be affected include Texas, Arizona, and California. An earlier report by Wave7 Research noted that ClearTalk has since discontinued its services last March 16. As for its customers, the company has started to transition them to Boost by offering a $ 49.99 iPhone 6 or free Android phones.

    Flat Wireless follows the footsteps of other small wireless network operators Revol Wireless and Cincinnati Bell in exiting this highly competitive industry.

    Source: Fierce Wireless

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