Titan Global Holdings, Inc., the parent company for Oblio Telecom Inc., announced that it was restructuring their Telecom units and getting out of the leased and owned network business and choosing instead to just focus on their core Distribution and Marketing strengths.

It has not been announced who will take over their switching operations (if anyone) or who Oblio will buy it's network services from instead, but it is certain that Oblio and Titan Wireless will now just go back to their original reseller business.

On Tuesday (Feb 5), Titan Global Holdings issued an interesting Oblio Telecom Press Release describing the problems they were having with their telecom division Oblio. They also announced that they have given up the prepaid wireless business. 

Here's a quote of the press release:

"Subsequent to the three months ended November 30, 2007, the Company's communications division experienced a significant decrease in sales and collections of outstanding accounts receivable. Many of the long-standing distributors of the Company's wholly owned subsidiary Oblio Telecom's products stopped placing orders for new product and stopped sending payments for previously placed orders. While we are vigorously pursuing legal action against many of these customers, the extended collection process has significantly disrupted the operating cash flow cycle of the prepaid international long distance portion of the Company's communication's division. These issues along with losses experienced in its network operations have resulted in the Company ceasing to do business as Oblio in the prepaid international long distance market. As such the Company evaluated the division's goodwill and other intangible assets for impairment based on changes in the business model. Based on the determination of management, the Company impaired the goodwill and certain intangible assets of Oblio."

From the press release, it seems that they're blaming on the distributors that they got together and just make a pact to not pay Oblio for their cards. Can you believe it?

For complete report on the press release, visit: http://biz.yahoo.com/e/080205/ttgle.ob8-k.html