Amp’d turns off the volume

Mobile startup to shut down its service

One of the highest-flying mobile startups has been grounded.

Amp’d Mobile, a so-called mobile virtual network operator, appears to be shutting down the service after earlier filing for bankruptcy protection.

Company told customers that “it is potentially suspending U.S. operations on July 24th” but essentially confirmed the closure by saying that customers’ service will not be available after Monday.

Amp’d had filed for protection from creditors in June. Among the major entertainment players that had been owed money by Amp’d include MTV Networks ($1.4 million) and Vivendi ($10 million).

MTV and Universal Music were both investors in the company.

Amp’d launched in 2005, leasing spectrum space from Verizon and getting into business with Jack Black, some “The Simpsons” writers and “Monster House” scribes Dan Harmon and Rob Schrab, all of whom were working on creating original episodes for the service.

But shuttering confirms that while the ability of startups to lease spectrum space has created a glut of providers, consumers’ appetite for the services has been modest.

Bankruptcy papers say Amp’d owes more than $100 million to creditors.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading