Amp'd Mobile on the Ropes?

More bad news for the MVNO industry: Amp'd, the cool virtual carrier that made a splash in late 2005 with those edgy "entertain yourself" TV ads—announced over the weekend that it has filed for Chapter 11 bankruptcy protection.

If you happen be an Amp'd subscriber, don't worry—you're phone won't go dead quite yet. The carrier plans on staying open while it restructures its operations and seeks more money. But it sure doesn't look good.

Amp'd looked like a great bet when it first launched in December of 2005. Running on Verizon Wireless' 3G EV-DO network, Amp'd was the first MVNO (Mobile Virtual Network Operator) in the U.S. to offer streaming video and music, and it targeted hipsters with its eyebrow-raising TV spots. The carrier launched its own video-streaming version of the Motorola Q in April and announced that it had recruited a boatload of new subscribers.

But it looks like Amp'd is having a tough time keeping up with all that growth (or at least, that's what company execs are saying), and industry watchers are speculating that it's only a matter of time before the carrier closes its doors.

It's been a rocky road for MVNOs (Mobile Virtual Network Operators) during the past year. Mobile ESPN memorably fouled out last October after it failed to draft enough subscribers (although it now lives on as a downloadable app on Verizon), while upstart Helio struggled initially before scoring with its feature-packed Ocean messaging phone (although Helio is by no means out of the woods).

So what would happen to Amp'd subscribers if the carrier goes under? When Mobile ESPN closed its doors, the operator waived termination fees and refunded its customers for their phones; I'd hope that Amp'd will follow suit if it meets Mobile ESPN's fate.

Related:
Amp'd Mobile looks to enter Chapter 11 [LAtimes.com]