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August 3, 2007
By Tara Seals
A little-known Maine-based wireless provider will purchase the customer assets of ill-fated MVNO Ampd Mobile Inc.
Prexar Mobile will offer services to Ampd customers in a deal approved by Judge Brendan L. Shannon of the U.S. Bankruptcy Court in Wilmington, Del. Prexar, itself an MVNO, offers nationwide postpaid wireless plans ranging between $39.95 to $179.95 per month. Unlike Ampd, the company offers basic services and does not appear to be courting hipsters and content-hungry young people.
Prexars ISP-rooted parent company, United Systems, will pay a combination of cash and stock in return for access to Amp’d Mobile’s remaining customers. Amp’d will get a 25 percent stake in Prexar, and be paid per customer depending on the plan, contract and service mix he or she signs up for. Most handsets can be transitioned, but Ampd customers with the Hollywood handset will not be able to port it to Prexar.
Stranded Ampd customers can also choose to take their handsets and business to any of the other CDMA carriers, such as Verizon Communications Inc. without penalties.
Amp’d shut down service July 24 after filing a petition for Chapter 11 bankruptcy in June. A mix of bad debt subscribers, poor billing practices, expensive marketing and business case issues brought down the MVNO, which ultimately blew through the $360 million in investments from MTV Networks, Universal Music Group, handset partner Motorola Inc. and network provider Verizon, without recouping any losses.
Read more about:Agents
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