Spot Mobile may be winding down operations. Dealers received a letter from the company yesterday asking then not to sell or activate any Spot Mobile SIM cards and to return all unactivated SIMs to Spot for a refund.
The letter, says in part, "As you know, Spot Mobile purchased and distributed wireless communications services for end user customers through the use of an underlying Tier 1 national carrier (the "Carrier"). Spot Mobile resold these services through you, our distributor, pursuant to the Distributor Agreement. Regretfully, our Agreement had matured/terminated. There was a proposed sale/transfer of the Spot Mobile assets to Florida Prepaid Cellular which was subject to FCC approval. This approval has not been timely granted by the FCC and as such we have no choice but to start to scale down the business operations."
I received identical copies of the termination letter from multiple Spot Mobile dealers and believe it is genuine.
When I called Spot's main support number I was told that Spot is not shutting down but is undergoing a "system update" which has temporarily prevented them from activating new accounts. Hopefully this means that Spot will be able to keep current customers' service active while it gets FCC approval for the proposed sale to Florida Prepaid Cellular or finds another buyer.
Spot was founded in 1986, making it one of the oldest prepaid MVNOs. Spot's plans and pricing have been competitive but the company never seemed to gain much in the way of visibility. If they are going out of business this is sad news for Spot's customers, dealers, employees and investors.