Amp’d to close this week

23 Jul 2007

The financially troubled US mobile virtual network operator (MVNO) Amp’d Mobile has sent all customers a text message announcing it will shut its network tomorrow (Tuesday, 24 July). The reseller filed for Chapter 11 bankruptcy protection last month and has struggled to meet the terms of an agreement under which it was to pay USD2.5 million to retain its connection with wholesale network partner Verizon Wireless. Verizon has since 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.’ It is reportedly costing Verizon Wireless USD370,000 a day to maintain services to Amp’d customers. The reseller has been encouraging subscribers to port their services to another operator.

United States, Verizon Wireless,


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