Amp'd Mobile Files For Bankruptcy Protection - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Amp'd Mobile Files For Bankruptcy Protection

Subscribers shouldn't panic just yet. Amp'd Mobile will continue normal business operations during the reorganization process.

Amp'd Mobile, a youth-focused Mobile Virtual Network Operator (MVNO), on Monday said it filed for Chapter 11 bankruptcy protection.

The company, which licenses spectrum from cellular carrier Verizon Wireless and resells cell phone services that include music, video, and entertainment content, issued a statement saying its "backend infrastructure was unable to keep up with customer demand" because of the company's rapid growth. Filing for bankruptcy is a necessary action to sustain momentum in the marketplace, Amp'd Mobile said.

Amp'd Mobile loses 7% to 8% of its subscribers each month, according to Levick Strategic Communications, a crisis management firm based in Washington, D.C.

Subscribers shouldn't panic just yet. Amp'd Mobile will continue normal business operations during the reorganization process. The reorganization process includes tapping investors for financing and improving the company's backend infrastructure.

An MVNO can generate millions of subscribers and enjoy success selling customized services to a targeted group of people, as is the case with Virgin Mobile. The company launched its service in July 2002 and uses Sprint's cellular network to offer pay-as-you-go services. Like Amp'd Mobile, Virgin Mobile also targets the youth.

But often trendy multimedia cell phones and entertainment content are not enough for MVNOs to thrive. After being in business for less than a year, Disney in April shut down Mobile ESPN on Sprint's network in pursuit of a different nationwide wireless carrier. Mobile ESPN was re-launched as ESPN MVP last month on Verizon Wireless' network and is now only available to Verizon Wireless subscribers that have V Cast-capable cell phones.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Flash Poll