Amp’d Mobile Inc. and Disney both offered details this week about their upcoming mobile virtual network operator services.
Amp’d Mobile said it’s on track for a pre-holiday service launch of its MVNO service that will target the increasingly attractive youth/young adult market and rely heavily on Verizon Wireless’ rapidly expanding CDMA2000 1x EV-DO network.
The company, which was founded by former executives at Boost Mobile L.L.C., said it expects to begin offering services during the fourth quarter with plans to begin an extensive advertising and brand-building campaign ahead of the actual service launch during the first week of November. Don McGuire, Amp’d chief marketing officer, said the company will spend between $45 million and $50 million on the campaign, which will take a “dark, Six Feet Under” approach.
McGuire did not release subscriber forecasts, but said Amp’d needed to generate $180 million in revenue per year to break even and that it expects to post average-revenue-per-user results in the mid-$50 range. McGuire noted that unlike some MVNOs that were hatched by larger companies or sprung from carrier partners, Amp’d is totally venture-capital funded and will be looking to provide a return for its investors.
To hit those revenue numbers, Amp’d said it initially will offer postpaid rate plans that include competitive voice pricing and tiered data rates that mimic what is offered by the cable TV industry. That model will include a basic package that will likely be included in a bundle and can be augmented with extra-cost premium content.
“Pricing is something we have to nail from a simplicity standpoint,” McGuire said. “We have done a lot of research on how people want to pay for service and found the cable model is very popular. We want to package everything on the base plan so that they still have money left over to buy the premium content.”
