ROK Entertainment Group said it has broken off negotiations to acquire startup MVNO Xero Mobile. ROK, a UK-based mobile media firm, provides live and on-demand video to wireless users around the world and began talks with the US firm last October.

Xero has been in pre-launch mode since its unveiling two years ago, when it announced its intention to target college-age students with an ad-subsidised MVNO service. Xero has so far failed to launch commercially. Similar ad-supported MVNO’s have already been launched in Europe. Blyk is one such offering. Last month Mobile Business Briefing reported that Blyk’s UK operation is growing by 3,000 subscribers a week and has a total customer base of 30,000. However, recent reports suggest that media buyers believe the small existing audience has limited their ability to invest in the targeted SMS and MMS advertising opportunities available.