Amp'd is Damp'd

Filed in archive Companies , Finance , Phones on June 13, 2007

Wireless network Amp'd Mobile filed for Chapter 11 bankruptcy. Amp'd leases access to the Verizon Wireless mobile network. The company has tried to differentiate itself by providing music, video, and games over its network.

Entering the wireless business is enticing due to the huge multi-billion dollar size of the market and opportunity to carve a sizable niche. But it's proven daunting as numerous ventures have failed, such as ESPN Mobile. Unlike international consumers, American consumers have shown limited interest in paying for media, information, and messaging on their cell phones. Plus it's an expensive proposition to fight for market share against huge wealthy incumbents like Verizon, ATT&T/Cingular, and Sprint/Nextel.

Amp'd launched in December 2005. It enters Chapter 11 with 200,000 subscribers, assets under $100 million, and liabilities more than $100 million. Verizon Wireless is the creditor, owed $33 million. Other major debtholders include Motorola, Vivendi, and bestbuy.