Disney cancels UK mobile kid-tracking

Disney has shelved plans to launch a mobile virtual network operator (MVNO) in the UK, saying the market is in flux.

The media giant had been planning to launch its family-friendly MVNO in the course of this year, piggybacking on O2's network. Now Disney has changed its mind, putting the plan on ice indefinitely.

A Disney spokeswoman said the decision had been made as a result of "the rapidly changing competitive environment".

She added: "Retail distribution outlets in particular have consolidated in recent weeks which has impacted our distribution opportunities."

One recent switch on the high street saw mobile shop The Link change hands, after being acquired by O2 from DSG International.

Disney launched its MVNO in the US earlier this year, positioning itself as an operator for families and allowing the sharing of calls and texts among family members - a move it was planning to repeat in the UK.

The sharing proposition raised some eyebrows in the industry. Nick Lane, principal analyst at industry watchers Informa Telecoms Media, said: "The concept is quite good - the family - but it's very much against the grain by capping spending. Everyone else in the industry is getting people to spend more."

The service also restricts kids from using certain services, such as chatrooms, and calling particular numbers.

More controversially, the US MVNO also offers a service which lets parents track the location of children using GPS and have the results displayed on maps available online.

According to the Alex Zadvorny, senior analyst at Analysys, the company's experience in the US may have led to the cooling off.

"The [UK market] is quite saturated and maybe there's some experience in the US that's putting them off... They have a lot of content and they can push that without an MVNO."

Disney has experience running a second MVNO in the US, based on sports channel ESPN. Subscriber numbers are thought to be very low - around 10,000 - although the MVNO has been running for six months.

Disney's kid-tracking service may yet reach the UK. The company's spokeswoman said: "We will continue to evaluate the UK retail landscape for mobile services and remain positioned to move on this initiative as the environment becomes more conducive."