SAN FRANCISCO (Reuters) - Walt Disney Co.'s ESPN cable sports channel said on Thursday it will shut down its Mobile ESPN wireless telephone business operations later this year and aims to license the brand to existing mobile providers.

Owners of Mobile ESPN phones will receive a full refund when they settle their final Mobile ESPN bill and customers who choose to stop Mobile ESPN service will be released from current contract obligations, the company said.

Mobile ESPN was one of the most ambitious mobile virtual networks, or MVNO, projects to be launched amid a broad move to provide branded wireless services to niche markets.

MVNOs rent space from wireless network operators such as Sprint Nextel Corp. Other MVNOs include youth-oriented services Amp'd Mobile and Helio.

Salil Mehta, ESPN Enterprises executive vice president, said in a statement: "With a redefined approach we have a greater opportunity to reach millions of fans while achieving our strategic and financial goals."

Shares of Disney were down 10 cents at $30.94 in midday trade on the New York Stock Exchange.