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Information on Amp'd Mobile

by Mandi R. Hall
  • Overview

    Amp'd Mobile's target customer was between the ages of 18 and 35.
    Amp'd Mobile was a mobile service provider that was active between 2005 and 2007. The service was geared to the 16- to 35-year-old market. Offering 3G devices capable of streaming music and video, Amp'd entered the mobile market in fall 2005. It used Verizon's network to provide broadband-like speeds to phones. Amp'd Mobile had ambitions to re-create entertainment on handheld devices; however, Amp'd Mobile declared bankruptcy in 2007 and now ceases to exist.
  • Inception

    As stated by Josh Rosenthal of Fast Company, "Virtually from the beginning, wireless start-up Amp'd Mobile seemed poised for greatness. When it formed in December 2003, its senior management team, including CEO Peter Adderton, was still glowing from its smashing success with wireless provider Boost Mobile." According to "PCWorld," Amp'd Mobile announced its entry into the mobile market in 2005 during the Cellular Telecommunications and Internet Association's Wireless show. Amp'd Mobile's service had signed on to use Verizon's high-speed 3G network, in effect leasing it for Amp'd customers' usage. The Amp'd service was offered in limited markets but would expand as Verizon's 3G network expanded.
  • Goals

    Amp'd Mobile's ambition was to bring "a more relevant, personal experience to the wireless lifestyle with unique music, video, community, entertainment, sports, and gaming offerings," according to Fast Company magazine. Amp'd had content contracts with Ultimate Fighting Championship and super cross racing, which it hoped would attract the younger crowd to its service. In addition, in hopes of becoming an entertainment-based mobile content company, Amp'd had high-profile financial investors and partnership agreements with popular entertainment companies including MTV and Universal Music Group, as stated by Rhonda Wickham of "Wireless Week."
  • Early Success

    Shortly after the company commenced business, Amp'd Mobile was considered a success by CEO Peter Adderton. In a 2007 news release, Adderton asserted that "Amp'd has always said mobile entertainment has the potential to change the way the world amuses itself. Our strong performance to date, unique entertainment offerings, and expansion into international markets proves we're on our way." Also noted is that Amp'd had attracted over 100,000 subscribers with its limited resources during its first year.
  • Problems

    Financial issues plagued Amp'd Mobile. Fast Company reported that Amp'd Mobile flew its executives across the country to its headquarters in California on a regular basis. Amp'd CEO Peter Adderton apparently used a helicopter to get to work. It has been leaked by former employees that the company had marketing issues by overpaying for advertising and sponsoring a plethora of entertainment gigs. In order to meet subscription goals, Amp'd was lenient in customer credit requirements, which ultimately led to non-paying customers and Amp'd Mobile's demise.
  • Bankruptcy

    Amp'd Mobile declared bankruptcy on June 1, 2007. At the time, Amp'd had approximately 175,000 subscribers. Fast Company said 80,000 of those were non-paying customers. According to Business Week, Amp'd was having a hard time collecting payment from subscribers. Upon filing for bankruptcy in Delaware, Amp'd Mobile owed in excess of $100 million to creditors.

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