Amp'd Files For Bankruptcy Protection
Jun 2, 2007, 9:19 PM by (staff)
Amp'd Mobile filed for Chapter 11 bankruptcy late on Friday. The company owes over $100 million dollars to a variety of creditors, including $33 million to network provider Verizon and $16 million to hardware provider Motorola. The virtual carrier has taken five rounds of funding from the like of MTV, Qualcomm and a number of investors. Chapter 11 allows a company to reorganize its debt, and does not indicate that Amp'd is going out of business, though in some cases Chapter 11 is a precursor to this. President Bill Stone says the company has been growing too fast, and that the MVNO will emerge from Chapter 11 stronger.
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Comments
growing too fast...?
for some reason I don't remember learning in college that more growth = losing money
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Growing too fast is not "bad", but it might not be the best in terms of profit. In economics they teach you of two costs: fixed and variable.
In this situation fixed is wages, equipment costs, rent, etc. The variable cost though is related on every...
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In this situation fixed is wages, equipment costs, rent, etc. The variable cost though is related on every...
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It is the MVNO model, some have the funding to survive and some simply do not have it. I can honestly say this is not the last of the MVNO deaths(remember ESPN mobile)...
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My prayer for Amp'd Mobile
I pray to God every night before I head off to bed that Amp'd Mobile is violently torn apart and dissolved like a school of sharks on a wounded fish amongst their creditors seeing how they owe $100 million in debt to which the greatest chunk, $33 million, is owed to Verizon Wireless on which Amp'd Mobile relies upon for their 1x-EV-DO voice and data services. Talk about biting the hand that feeds you. I also hope Verizon Wireless will leave the 170k Amp'd Mobile customers in the dark by terminating their wireless access ASAP seeing that of that 170k customer base, approximately half of them are deadbeat customers defaulting on their 18 month contracts. While we're at it, who's up to deporting Peter Adderton, the Amp'd Mobile CEO back to the ...
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Damn!
There hasn't been a company like Amp'd, nor will there be one after Amp'd, should it go away.
I saw this coming when it came out... didn't think it would work. It's a man eat man world out there.
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Only when they keel over and die. Or, when they start raising rates.
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HAHAHAHAHA *cough* ugh... god... that's a good article.
Can't say I'm surprised. At least they are relying on a much better network than other virtual carriers.
