A few months ago, there was some speculation that MVNO The People’s Operator (TPO) was planning to shut down its US operations. The report was first spotted on UK website, Proactive Investors, which revealed the decision of the company and the reasons behind it.
Even though the report was published back in May, nothing official had been announced by the Sprint and T-Mobile MVNO. That changes today with the newest update to TPO’s US operations.
Earlier today, The Telegraph revealed that the cause-based MVNO was able to secure financial approval for its plans to sell its US customer base to Ting, another US mobile network. The report showed that the company will be selling its US customers for a price of GBP 700,000 or $ 925,461.
TPO has a customer base of around 12,000 in the US. With this amount, it’s safe to assume that Ting will be paying $ 75 per subscriber.
In addition to confirming the sale, the company also revealed reports that Jimmy Wales, Wikipedia founder, has stepped down from his position on the board to concentrate on other interests. Wales originally invested in the MVNO back in 2014. It was revealed that he stepped down from his role as chairman last year.
The decision to sell its US customer base stems from a funding crisis, especially with lender Barclays insisting the company to do so. With the proceeds from the sale, Barclays insist that this will be used to pay off the GBP 1 million loan or around $ 1,322,052.
TPO made a recent stock market announcement sharing that it is unable to publish its annual audited accounts for 2017 since it was still negotiating with Barclays. The MVNO continues to seek bridge funding to cover the period while it awaits to receive the proceeds from the sale. The audit was expected to be released last June 30, 2018. In compliance with the market rules set by AIM, the shares of TPO are set to be suspended from trading starting July 2nd until they are able to publish its accounts for 2017 Fiscal Year.
In an agreement published on Investegate, it was revealed that the sums payable to TPO USA will be payable after an agreed transition period during customer migration and monitoring of customer balances.
You can read the whole agreement here.