Amp’d Mobile Shutting Down Today

Amp’d Mobile It’s been almost 2 months since Amp’d Mobile went bankrupt (Amp’d is a mobile virtual network operator (MVNO) that runs on the Verizon Wireless network). Since then, it has been slowly but surely limping into the deathbed. Amp’d Mobile has sent a text message to customers announcing it will shut down today (Tuesday, 24 July). I guess it’s a nicer way to stop service, rather than hang up on callers like Sunrocket did.

The final nail in the coffin was when Amp’d Mobile struggled to meet the terms under which it was to pay US$2.5 million to retain its connection with wholesale network partner Verizon Wireless. Verizon has lost patience with Amp’d, saying in a statement:

‘While it is not the court’s responsibility to second-guess the debtor’s business decisions, it is the court’s responsibility to protect creditors’ interests from the actions of inexperienced, incapable or foolhardy management.’

Apparently, it costs Verizon Wireless $370,000 a day to maintain service to Amp’d customers. Amp’d has been encouraging subscribers to port their services to another operator. I always thought that Amp’d was a cool concept, including having mobile money/mobile wallet/m-commerce services with Obopay, but one that never got off the ground.

I hope that Verizon Wireless will take back the 200,000 customers that Amp’d had (perhaps less because some customers would’ve left soon after the bankruptcy). Their phones and service will definitely work on the Verizon Wireless Network (with a new PRL).