Zer01

Zer01 is no longer active as a direct sales company.

Zer01 Mobile was a Las Vegas-based telecommunications venture introduced in 2009 by Unified Technologies Group, Inc. (UTG), with Ben Piilani serving as CEO. The company attracted considerable attention at the April 2009 CTIA Wireless convention by announcing a nationwide prepaid mobile service offering unlimited voice, data and Internet access for $69.95 per month without a contract. An additional $10 per month was promoted for unlimited calling to approximately 40 international destinations. Zer01 said its proprietary "Veritable Mobile Convergence" technology would route voice calls over VoIP while using existing GSM cellular data networks. The company announced a commercial launch for July 1, 2009, but the promised consumer service did not become commercially available.

Zer01 initially discussed conventional retail and telecommunications distribution, but in May 2009 it entered an agreement with Buzzirk Mobile and its parent, Global Verge, to market the service through network marketing. Global Verge recruited independent sales associates who paid approximately $70 initially and $40 per month for back-office and sales-system access. Associates were promoted the opportunity to earn recurring commissions from wireless subscribers and compensation associated with building sales organizations. Zer01 CEO Ben Piilani stated at the time that Global Verge had recruited approximately 50,000 associates, although that figure could not be independently verified. The advertised wireless service itself was expected to retail through Buzzirk for approximately $79.95 per month.

Questions about Zer01 intensified during the summer of 2009 as its promised launch dates passed without working phones or active customer service. Journalists were unable to verify the network relationships Zer01 said would support its nationwide coverage, and AT&T specifically stated that it had no agreement with Zer01 despite Zer01 displaying a coverage map nearly identical to AT&T's. Laptop Magazine, which had named Zer01 its Best Overall Product at CTIA 2009, rescinded the award in August 2009 after Zer01 failed to provide a promised working handset for testing and questions continued regarding the company's technology and business relationships.

On August 13, 2009, Zer01 terminated its distribution agreement with Buzzirk and Global Verge, citing breach of contract. Global Verge subsequently sued Zer01 in Clark County, Nevada, alleging that it had loaned the company approximately $170,500 after Zer01 experienced financial difficulties. In May 2010, the Nevada court entered a judgment of more than $43 million against Zer01 and Ben Piilani for breach of contract, tortious interference with contractual relations and projected long-term profit losses. Global Verge's attorney acknowledged that collecting the judgment was doubtful because Zer01 appeared to have little or no recoverable value.

By March 2010, Zer01's website had disappeared and was redirecting visitors elsewhere. The company's proposed nationwide wireless service never developed into the functioning consumer telecommunications business that had been announced in 2009. The former zer01mobile.com domain is now used for unrelated content and has no connection to the original company. Zer01 wasmarketed via Buzzirk and Global Verge.