Sometimes, if it sounds too good to be true, it just might be. Take, for instance, Zer01’s claim to a patented technology that will allow the company to provide unlimited wireless voice and data services to customers for just $70 per month. At first, it sounded too good to be true. Zer01 said that they would be able to deliver truly unlimited wireless service on the cheap by routing all calls and data through the company’s proprietary VoIP network. Then, when Zer01 blitzed CTIA Wireless 2009 and won an award from Laptop magazine, the company’s claims started to seem plausible. Zer01’s CEO Ben Piilani even took the time to explain to IntoMobile his company’s plans to partner with a nationwide GSM carrier to become the premier “VoIP carrier” in the US (video below). Unfortunately, things are now looking quite dismal for Zer01.
Zer01 had planned to go live with its network on July 1. That day came and went without so much as a public demonstration of the company’s network technology. Zer01’s explanations for the launch delays have been varied, at best. They’re downright suspicious, at worst. One story has the delay being attributed to SIM cards that needed to be defragged. Another blames the installation of software on said SIM cards for the launch delay. The story keeps changing and Zer01 keeps dodging press inquiries. In fact, I’ve personally been hounding Zer01’s inboxes in search of some sort of communication for a handful of months. I have yet to get a response, but still continue to receive spammy press releases from Zer01 to this day.
Wait. It gets worse. Zer01 has enlisted an army of “associates” that were lured into paying the company a monthly fee in return for “back office support” and the hope of earning $10 for every Zer01 customer that signs up under them. Doesn’t that sound like your classic multi-level marketing (pyramid) scheme? Sure does. So much so that Laptop magazine has withdrawn its award to Zer01 Mobile.
Zer01’s leadership has also come under fire recently, with many of its top-level executives being cut or stepping down. At least one of its recently cut executives have now gone on record with the opinion that Zer01’s associates would never see a paycheck from the company, and that Zer01’s launch is unlikely. Zer01 is also affiliated with other shady companies that have ties to shady multi-level marketing businesses. Zer01 and its affiliates apparently employ executives with records stained by probation for fruad, investigations for fraud and suspicious credentials. The graphic below (from NetworkWorld)explains Zer01’s web of shady dealings more clearly.
All in all, Zer01 needs to prove themselves legitimate as soon as possible. The ball of bullshit is rolling. Ben Piilani would do well to get his shit together and bring his company out of the shadows. Assuming Zer01 is even a viable mobile company…
Take a look at Ben Piilani’s interview after the break.
[Via: Yahoo]

