Cell phone service dealers are falling out

New York -- U.S. companies that jumped on the cell phone service bandwagon in recent years are struggling and many are going out of business, industry observers said.

Phone service resellers ESPN Mobile, Disney Mobile and Amp'd Mobile, which catered to youth, have all gone under, USA Today reported Tuesday.

Sonopia, a company that helped smaller groups package their own cell phone service is also going under and Virgin Mobile, the second largest reseller, reported first-quarter earnings declined 75 percent in 2008, compared with a year ago.

Resellers are falling prey to common ailments, including the lack of a distinctive feature and trying to get by on low volumes, the report said.

Copyright 2008 by United Press International.