Amp’D files for Chapter 11 June 2, 2007
Posted by chetan in : US Wireless Market , trackbackOn a quite saturday afternoon, Amp’D announces its march to death-bed.
Per WSJ, Start-up wireless carrier Amp’d Mobile filed for Chapter 11 bankruptcy protection late Friday night, according to a person familiar with the situation.
The move marks the latest of several failed wireless ventures that focused on bringing video, music and other content to cellphones.
Bill Stone, president of Amp’d Mobile, confirmed that the company filed for bankruptcy protection.
Mr. Stone said the company was forced to make the move because its business has been growing fast in the past 6 to 8 months and couldn’t keep up with the growth. “We are pretty confident we’ll come out stronger,” Mr. Stone said in an interview. This is one of the most bizarre things i have heard. The problem is very basic, their cost is much higher than their revenues. The $100 ARPU doesn’t make up for the cash they were bleeding in operations and marketing.
Is Helio next?
Comments»
They certainly were not spending the money they were bringing in on customer service, which is a nightmare. I have one of their phones. Every now and then it just turns off for a few days, which is how long it takes to get someone from their care office to re-set it.
On a broader scale, 200k customers is pretty lame after over a year of operation, clearly not addressing customer concerns about quality of service.