One of the nation’s first and most highly regarded mobile virtual network operators, based in Hawaii, has come apart at breakneck pace, with customers experiencing outages, storefronts going dark, and a lawsuit alleging severe financial improprieties from the top. This MVNO darling, Mobi, has recently been in the center of a whirlwind of accusations that its CEO illegally withheld close to a million dollars in wages from employees and fired executives without proper authority—an act that was soon after topped off with reports that he quickly left the country, leaving subscribers trying to port out from their numbers.
The internal crisis first spilled into public view in industry reports and in court filings, and the repercussions have already been swift: some people cannot make service work at all; others may lose basic access for days or longer; still others face widespread confusion about how they might extract account credentials that are necessary to leave. Eager customers are pressing for a quick solution.
What sparked the meltdown at Mobi and its MVNO operations
The company claims that Mobi’s chief executive, who was not named in the suit, refused to pay about $1 million owed in wages and summarily ousted key leadership—actions that purportedly sabotaged operations from payroll to provisioning. Customers would report billing issues in the weeks to come, and receive poor customer service or no service at all when calling, and SIMs lost their access to the network. Storefronts reportedly closed without notice.
Several sources, including some cited by Fierce Network, allege the CEO has fled the United States, with Brazil named in employee comments and court records. These are allegations, unproven in the courts, but the operational chaos is unmistakable: reports of outages; missing information associated with accounts; and a customer base laboring to place routine number transfers.
What it means for customers right now and how to port out
If your line is still active, do a transfer right away. To port your number, destination carriers require the account number and a port-out personal identification number (aka account security PIN). Look on recent bills, emails, or texts for this information. If you cannot get it, ask your new carrier to escalate a “stuck port” — most carriers have back-office procedures for hard-to-move numbers.
FCC rules allow the majority of single-line ports to be completed within one business day if “number portability” database information is accurate and attempts by carriers to verify subscribers’ credentials are also successful. Keep your existing line active until the port is done — canceling it before can leave your number stranded. If you hit stonewalling, file a complaint with the FCC or your state consumer protection office — regulators often enlist carriers to give stranded ports special attention.
Review your payment methods. If your service has already stopped working but autopay tries to bill you, contact your bank or card issuer so you don’t get charged again. Record everything: screenshot error messages, keep call logs, and any communications that may help contest litigation or proceedings resulting from a court-appointed receiver or bankruptcy scenario.
Why MVNOs are vulnerable when leadership and cash fail
MVNOs rent access to networks from national operators and compete on price, flexibility, and customer service. Margins are razor thin, and the business relies upon dependable billing systems, competent management, and stable wholesale contracts. When governance breaks—whether due to apparent mismanagement or sudden cash shortages—service disruptions can multiply fast.
The industry has had prominent stumbles in the past. Amp’d Mobile imploded in 2007 as fast growth revealed weak credit and cost controls, while TPO Mobile closed its U.S. operation a decade later and forced customers to transition elsewhere. Even healthy MVNOs have been acquired by larger players looking for scale. The moral is clear: While the network you rent matters, so too does operational rigor.
Hawaii adds complexity. A small, geographically separated market increases transportation and support costs, and leaves less margin for error. When leadership is in disarray, there’s less slack to keep the lights on.
What regulators and partners might do next
Although MVNOs are not rate-regulated, some consumer protections apply. Number portability is regulated by the FCC, which has the ability to elbow carriers into action on ports. The Department of Commerce and Consumer Affairs in Hawaii can take complaints and might work with courts if insolvency proceedings start. When MVNOs do fail, host networks and retail partners have sometimes provided transition paths or temporary service to reduce the number of people who are cut off.
If litigation goes forward, a court may appoint a receiver to protect assets and offer minimal support in day-to-day operations — typically geared toward letting ports work and giving required customer notices. None of this is carved in stone, however, so hoping for formal direction before porting your numbers should be out of the question.
Bottom line for Mobi subscribers amid ongoing turmoil
Mobi’s implosion — complete with allegations of wage theft, mass firings, and a fleeing CEO who has reportedly gone abroad — has driven customers into limbo. If your line still works, then you need to port immediately (gathering account credentials in the process) and press your new carrier’s porting team. If you run into a roadblock, document the problem and bring it up with the FCC. In a storm of MVNO turmoil, the best defense is making sure you don’t lose your number and service.