Amp'd Mobile Closes Doors, Liquidation Process Likely

Once-promising Amp'd Mobile is now closing its doors, according to information recently issued to existing customers. The entertainment-focused, multimedia-heavy MVNO (Mobile Virtual Network Operator) told customers that it is "potentially suspending US operations on July 24th," and noted that it is "currently in discussions with several parties." A late-stage buyer appears unlikely, shifting the focus towards a liquidation of assets.

The development closely follows a bankruptcy filing in June, one that revealed heavy infrastructure costs and a massive debt load. The LA-based company rallied 200,000 subscribers, though that population was unable to sustain broader operational costs. The outcome reflects a rough-and-tumble MVNO sector, one that recently claimed ESPN Mobile as a casualty. In late 2005, Amp'd began offering 99-cent, OTA music downloads, a move recently mirrored by Sprint.

Link to Digital Music News Article