Xero Mobile’s (Pink Sheets:XRMB) revolutionary ad-subsidized mobile phone service for college students is entering its pilot testing phase, the company recently announced, after completing the design and implementation of its core systems with technology partner XIUS.

Xero features TV-style ads with better ability to measure viewership than direct mail, the accountability of the Web and the intimacy of mobile, and unlike many competitors, has developed its own integrated telecommunications solution to provide a range of services.

“This milestone is key to our plans to deliver a uniquely valuable service to our subscribers,” said Roger Davis, CEO of Xero. “I am pleased that we are able to begin our pilot implementation as planned in order to achieve our launch targets.”

Real-time reverse billing technology allows subscribers to receive immediate airtime credits in exchange for watching an advertisement that has been carefully chosen to match their interests. The delivery of an “instant reward” is the key to providing value to the consumers who view the ads.

In addition to its core telecommunications infrastructure, Xero has been developing proprietary solutions for advertising transmission. Using patent-pending video composition and compression techniques, Xero will be able to deliver high-quality video advertising at substantially lower costs than existing download and streaming solutions.

“Driving down the cost of delivery enables Xero to offer a highly compelling and cost-effective solution for advertisers targeting extremely specific audiences,” said Robert Hubbard, senior vice president of engineering at Xero.

Xero will begin testing with a limited subscriber base prior to the full launch.

About XERO Mobile
Los Angeles-based Xero Mobile combines two of the largest and most dynamic markets in the U.S. – mobile phones and advertising. Targeted to the 17.3 million-strong college market, Xero will provide high-specification handsets without a contract and at notably competitive prices. In return, students will agree to accept a small number of relevant video ads on their handset each day. Each ad provides the student with free mobile airtime. Prominent national advertisers will be able to send permission-based TV-style ads with the accuracy of direct mail, the accountability of the web and the intimacy of mobile. The company is publicly traded on the Over-The-Counter Pink Sheets under the symbol “XRMB.” For more information, visit www.xeromobile.com.