Saturday, July 21, 2007

Amp'd MVNO Closes Its Doors

Amp'd Mobile is looking into selling off their assets after a failed attempt at acquiring additional investment funds to help get them out of bankruptcy, which they filed for on June 1st. Amp'd is not the first high profile MVNO (Mobile Virtual Network Operator) to shut down shop, as Mobile ESPN called it quits late last year, only to resurface as content on Verizon.

An MVNO operates just like a wireless carrier by selling their own phones and plans, however, they do not operate their own network. They pay the larger carriers like Sprint and Verizon to use their network. Normally MVNO's have a very targeted market. Amp'd Mobile is using Verizon's network and racking up a bill of $370,000 a day. This is on top of the $50 + million they haven't paid.

It's believed that Amp'd will have a cash balance of only $9,000 on July 23rd. They are working with the bankruptcy court to set up an auction for some or all of its assets.

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