06/05/07 - Amp'd Mobile Files For Chapter 11 Bankruptcy

J-Banks · 06-05-2007, 11:53 AM

Amp'd Mobile Files For Chapter 11 Bankruptcy
Posted: 06/05/2007

Startup wireless operator Amp'd Mobile filed for Chapter 11 bankruptcy late Friday, unable to meet payments due on almost $100 million of debt.

The company, which launched service in December of 2005, does not own its own network but instead rents airtime from that of Verizon Wireless to offer its service. Like other companies who do the same -- such as Helio and Virgin Mobile -- Amp'd's strategy is to offer a suite of mobile content and entertainment services targeted at a specific user group as a way to stand out in the hyper-competitive wireless arena.

While larger operators like Verizon offer services designed to appeal to a wide range of users, Amp'd focuses on the young-adult market with edgier video, games and music content-some of which it produces itself.

Analysts say operators like Amp'd need about 1 million subscribers to become self supporting. Until then, they rely on huge amounts of funding to remain in operation, with most of the money going to expensive marketing and customer acquisition costs. Amp'd has raised a total of $360 million in funding from such sources as MTV Networks and Universal Music Group.

To date, it has acquired just under 200,000 subscribers, almost half of which has come in the last 8 months. In a statement, Amp'd spun the bankruptcy filing as necessary due to its "rapid growth."

"As a result ... our back-end infrastructure was unable to keep up with customer demand," the statement reads. "We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place."

SOURCE:

GMNRecordsCT3 · 06-05-2007, 09:51 PM

WOOOOOOOOOOOW...

sucks for them...

Boss In The Game · 06-05-2007, 10:03 PM

i love how they try and bullshit it like thier doin good

verison runs shit

Dro_85 · 06-06-2007, 05:28 AM

cheers 4 the info

bksoulja905 · 06-10-2007, 04:13 PM

shit eh....

06-05-2007, 11:53 AM	#1
J-Banks Super Moderator Join Date: Feb 2005 Location: Providence, RI Posts: 21,015 Repped: 5,294 Repped 53,425 Times in 7,839 Posts Blog Entries: 1 Neg Reps: 53 Neg Repped at 93 Times in 86 Posts	06/05/07 - Amp'd Mobile Files For Chapter 11 Bankruptcy 06/05/07 - Amp'd Mobile Files For Chapter 11 Bankruptcy Amp'd Mobile Files For Chapter 11 Bankruptcy Posted: 06/05/2007 Startup wireless operator Amp'd Mobile filed for Chapter 11 bankruptcy late Friday, unable to meet payments due on almost $100 million of debt. The company, which launched service in December of 2005, does not own its own network but instead rents airtime from that of Verizon Wireless to offer its service. Like other companies who do the same -- such as Helio and Virgin Mobile -- Amp'd's strategy is to offer a suite of mobile content and entertainment services targeted at a specific user group as a way to stand out in the hyper-competitive wireless arena. While larger operators like Verizon offer services designed to appeal to a wide range of users, Amp'd focuses on the young-adult market with edgier video, games and music content-some of which it produces itself. Analysts say operators like Amp'd need about 1 million subscribers to become self supporting. Until then, they rely on huge amounts of funding to remain in operation, with most of the money going to expensive marketing and customer acquisition costs. Amp'd has raised a total of $360 million in funding from such sources as MTV Networks and Universal Music Group. To date, it has acquired just under 200,000 subscribers, almost half of which has come in the last 8 months. In a statement, Amp'd spun the bankruptcy filing as necessary due to its "rapid growth." "As a result ... our back-end infrastructure was unable to keep up with customer demand," the statement reads. "We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place." SOURCE: __________________ JBanksblog.com - check it out __________________

06-05-2007, 09:51 PM	#2
GMNRecordsCT3 Macaroni wit the Cheeesse Join Date: May 2005 Location: Wash Heights, NYC Posts: 17,607 Repped: 6,779 Repped 2,309 Times in 618 Posts Neg Reps: 202 Neg Repped at 50 Times in 40 Posts	WOOOOOOOOOOOW... sucks for them... __________________ myspace.com/bummydavis - soundclick.com/gmnproductions "The name on my car insurance is YOUR FUKIN FAULT!!"

06-06-2007, 05:28 AM	#4
Dro_85 Dro_85 Join Date: Mar 2007 Location: Belfast North Ireland Posts: 1,820 Repped: 1,560 Repped 28 Times in 13 Posts Neg Reps: 0 Neg Repped at 0 Times in 0 Posts	cheers 4 the info __________________ So who's your top ten? Is it MC Shan? Is it MC Ren?

06-10-2007, 04:13 PM	#5
bksoulja905 $-Money In Da Bank-$ Join Date: Oct 2006 Location: durrty shwa Posts: 1,071 Repped: 712 Repped 0 Times in 0 Posts Neg Reps: 0 Neg Repped at 0 Times in 0 Posts	shit eh.... __________________ C'z ^ M2M..CMC 4 Life Its Killa Time! G-G-G-G-UNIT!!!

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06-05-2007, 10:03 PM	#3
Boss In The Game Veteran Join Date: Jan 2006 Posts: 1,205 Repped: 49 Repped 79 Times in 33 Posts Neg Reps: 0 Neg Repped at 0 Times in 0 Posts	i love how they try and bullshit it like thier doin good verison runs shit