Amp’d Mobile Bankruptcy linked to 80,000 Delinquent Accounts!

We knew it was a bit strange that a company with a healthy, growing user base could go bankrupt. Moconews was able to get their hands on the actual Chapter 11 filing – providing insight into Amp’d Mobile’s financial troubles. It seems that Amp’d Mobile was a bit late in realizing that they had upwards of 80,000 non-paying subscribers. That’s a pretty big portion of the estimated 200,000-strong subscriber base that Amp’d was supposedly servicing.

Add that not-so-little problem with outrageous monthly operating costs, and we start get the picture. It’s starting to look like Amp’d Mobile went down in a blaze of glory – spending like crazy under the pretense of booming success until the very end!

via: moconews

  • Meatloaf

    I read that Amp’d was spending $12-15 million a month on network capacity that they bought wholesale from Verizon!

  • Will Park

    Operating costs also include rebates to be paid out, employee payroll, health insurance, etc. – payroll is rumored to have been $2M a month!

  • george bayona

    i applied for an amd mobile phone in jan 07. i purchased the service from best buy, and the sales rep at the time didnot inform me that if you sign up for service and activate in the middle of the month, whatever plan you sign up for, you only get half of the minutes for the remainder of the month. so stupid me talked away for two weeks thinking i had 6oo minutes when all i had was 300. any way i got 500 dollards in overage talk time. the customer service is terrible.i got hung up on, cursed at, just to try to fix this problem.not only that , they charged me 1000 dollars for bogus fees. the phones worked great , but the cust service is the worst in my 31 years in exsistance.now i have a outstanding bill for 1500 dollars and i call constantly to try to get credited, however my credit was affected drasticly. PLEASE DO NOT USE AMPD MOBIL SERVICE>>>

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