FAILDEX失樂園
中文

free 3G

The business, the turning points, and the decisions behind them.

Event year2014

01 / WHAT IT BUILT

What the company did

Samba Mobile was a UK ad-funded mobile broadband startup that offered free 3G data in exchange for watching video advertisements on PCs and tablets. Founded in May 2010 by Ben Atherton, it resold connectivity on the Three mobile network, launched to users in July 2012, reached about 10,000 users by November 2012, and raised $1.4 million.

02 / free 3G FAILURE REASONS

Failure reasons

Samba Mobile's ad-for-data model collapsed under the economics of wholesale connectivity. High and rising data costs, which had to be paid in advance, made the free model unsustainable, and negotiations with wholesale data partners to cut costs failed. The company stopped service with immediate effect at the end of a billing period; founder Ben Atherton later repurposed the technology as a B2B play.

03 / EVENT HISTORY

Events in the structured record

  1. Company founded

    Ben Atherton founds Samba Mobile in the UK; the startup raises $1.4 million.

  2. Service launch

    Samba launches free 3G broadband in exchange for video ads in July 2012, reaching about 10,000 users by November.

  3. Shutdown

    On April 28, 2014, Samba Mobile shuts down after less than two years, blaming high and increasing wholesale data costs; its technology lives on as a B2B play.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    Samba Mobile raised $1.4 million, including a second angel round in October 2012.

  2. 02

    The company blamed its closure on high and increasing, and therefore unsustainable, data costs.

  3. 03

    Service stopped with immediate effect after negotiations with wholesale data partners failed.

  4. 04

    No reliable loss figure with a clear subject, period and basis exists, so no loss amount is recorded.