The mobile broadband SIM-only provider has disabled its service without warning.
Samba Mobile has announced it has had to close down due to unsustainable data costs.
Launched in 2012, the mobile virtual network operator (MVNO) used the Three network to provide mobile broadband via a SIM card which could be used with mobiles, laptops, tablets and dongles.
SIM cards could be purchased for up to £12.50 and came with a data allowance. The company also sold dongles which cost up to £25. Once the original allowance was used up, customers were able get free data by watching online ads or make cash top-ups via PayPal.
But now the company has disabled its service with immediate effect after negotiations to secure a cheaper deal on wholesale data with partners broke down. There are no plans to turn the service back on unless a cheaper arrangement can be agreed on.
Samba posted a message on its website stating:
“Sadly, Samba has had to take the difficult decision to close, primarily due to high and increasing - and therefore unsustainable - data costs. We hope that you, our customers, have been happy with the value exchange received over the last two years.”
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Latest to fall
Samba Mobile is the latest ad-funded MVNO to shut down with no warning.
Last month Ovivo Mobile also abruptly disabled its SIM-only mobile service, which came with 150 minutes, 250 texts and 500MB data for free if you agreed to receive promotions every 10 minutes.
Offering users a free service in return for watching brief online ads is a business model several have tried, but have yet to succeed with.
[SPOTLIGHT]However, Samba Mobile put a positive spin on its ad-funded service saying users had taken part in a “unique experiment that has been welcomed by the ad industry”.
The company went on to say: “We have run over 1000 campaigns for our partners and have, to a large extent, proven that people are happy to consume advertising if they are in control of the experience and if they get something meaningful in return. We will be taking this experience into subsequent ventures.”
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Refunds for some
Samba Mobile had around 2,000 users.
Customers that bought a SIM or dongle in April 2014 will be refunded via the PayPal account they used by Thursday 1st May.
Those that bought a SIM or dongle before April 2014 won't be eligible for a refund from Samba.
However, you may be able to get your money back by raising a dispute with PayPal, which Samba customers had to use to make purchases.
PayPal terms and conditions state if you don't receive the service you expected you can raise a claim against a company. The dispute must be raised within 45 days of purchase. In this time both parties are encouraged to communicate to resolve the issue, but as the firm is now closed you can take it to the next level and escalate the claim within 20 days of making the initial complaint.
PayPal will have to review the claim at this stage and may reimburse you out of its own pocket.
Samba says those who purchased a dongle from the company before April 2014 will still be able to use it with another provider’s SIM.
Those who bought a cash top-up that hasn’t expired (top-ups last 28 days) will also be refunded for any unused data via the PayPal account they used by Thursday 1st May 2014.
However, Samba Mobile won’t be honouring the free data credit which people earned for watching ads and no £2.50 commission will be paid for any sign-ups made through the refer a friend scheme made in April.
As Samba Mobile offered broadband-only SIMs, a mobile number wasn't linked to them, so you won’t need to wait for a PAC to switch providers. Take a look at Recombu for the best offers around at the moment.
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