Amp'd Mobile Bankruptcy Costing Verizon $370,000 A Day

Amp’d mobile declared bankruptcy after nearly 1/2 of their customers did not pay their bills. Now Verizon, the company the leases Amp’d its network space, is petitioning the court to let them cut service to Amp’d’s remaining customers.
From RCR Wireless News:

Verizon Wireless said that as of June 23, Amp’d Mobile had incurred $15.6 million in post-bankruptcy charges and is costing the carrier $370,000 a day, but still has not obtained debtor-in-possession financing that would assure the carrier that its bills will be paid. Verizon Wireless said it has received one payment of $2.5 million, which was supposed to placate the operator and allow Amp’d Mobile to have continued access to its network.

At the time of the bankruptcy filing, Amp’d had already run up $41 million in unpaid bills to Verizon, in addition to the aforementioned $15.6 million.The Pioneer Press reports that Amp’d has about $9,000 in cash. This means that you are likely richer than Amp’d mobile.

Amp’d marketed their services to low income/young/credit risk customers who were otherwise unable to get a nonpre-paid cellphone. It did not work. At all.

VZW’s Q2 growth hit by Amp’d write-off [RCR Wireless] (Thanks, Rob!)
Amp’d may be shut off [Pioneer Press]

PREVIOUSLY: Amp’d Mobile Files For Bankruptcy After 1/2 Of Their Subscribers Don’t Pay Their Bills

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