Mobile virtual network operator Amp’d Mobile Inc. last week made its long-awaited and much-hyped soft launch. The carrier is offering a range of postpaid calling services, including an unlimited calling option and push-to-talk capabilities, as well as a trio of CDMA2000 1x EV-DO handsets. The Amp’d Mobile service, which uses Verizon Wireless’ network, is available exclusively through the company’s Web site.
Amp’d Mobile, which announced in March its MVNO plans to target the active-youth market, looks set to differentiate itself in an increasingly competitive market by relying heavily on content.
On the more traditional side, the company’s service plans start at $30 a month for 250 anytime minutes. The plans include unlimited night and weekend calling as well as unlimited in-network calling once customers use up their bucket of anytime minutes. Customers also can add unlimited PTT services, which use Kodiak Networks’ RTX platform, for $1 per day. The plans escalate up to $200 per month for unlimited cellular and PTT calling, which include a free handset with a two-year contract.
Amp’d Mobile has said it also plans to offer prepaid rate plans shortly after launch.
The rate plans are comparable to most traditional postpaid offerings from the industry’s larger competitors-and trump many MVNOs that have focused solely on prepaid plans. Amp’d Mobile also took a page from Boost Mobile L.L.C.-which was started by Amp’d Mobile founder Peter Adderton-by giving its PTT service a per-day charge.
The company’s initial handset selection is limited to a pair of Kyocera Wireless Corp. slider models that differ only in color. The black model is dubbed “Jet” while a white version is called “Angel.” The handsets will be available by the end of the year. Both handsets sell for $129, which is more than the company’s original plan to offer the entry-level handsets for $99.
Amp’d Mobile plans to offer a black version of the Motorola Inc. E815-rechristened “Hollywood”-beginning next year. The carrier had planned to offer a Motorola slider handset, but the phone has yet to make an appearance.
All three handsets support EV-DO capabilities, and all feature a digital camera with video recording and an expansion memory slot for playing MP3s. Amp’d Mobile also allows users to log on to the company’s Web site to pre-program what content they want included on their handsets. Once users receive and activate their handsets, the settings are downloaded automatically using over-the-air technology.
The company’s differentiation, and best chance to find its wireless niche, is in its data offerings. Amp’d Mobile is giving all postpaid rate plans unlimited access to Amp’d Live, its streaming video service, as well as unlimited access to the mobile Web. The carrier is also offering free samples of its content offerings, which will allows users to get a taste of personalizing their phones with songs, ringtones, videos, wallpaper and screensavers. For the first three months, data transfer charges for downloading and streaming will be waived with any rate plan. The $200-per-month plan includes all services with no limits on use.
Amp’d Mobile already announced plans to launch a downloadable music service that will mimic Apple Computer Inc.’s iTunes service, which charges 99 cents for full-length track downloads. Sprint Nextel Corp. is the only domestic operator offering downloadable music tracks today, but charges $2.50 per song.
Amp’d Mobile has also said it plans to stream live content to handsets using mobile studios, and has announced several significant content agreements.
Last week alone, Amp’d Mobile announced plans to offer TV clips from CBS and UPN. The two television networks said they plan to provide Amp’d Mobile subscribers with access to show clips, previews, interviews and behind the scenes footage from CBS prime time shows such as “CSI:NY”, “Numb3rs” and “The King of Queens,” along with highlights from “The Late Show with David Letterman.” As for UPN, the company will offer Amp’d Mobile subscribers exclusive content from “America’s Next Top Model,” “Girlfriends” and the sitcom based on comedian Chris Rock’s childhood, “Everybody Hates Chris.”
Amp’d Mobile also managed to secure $50 million in funding from MTV Networks, along with a deal for repurposed and exclusive, made-for-mobile content from MTV, VH1 and Comedy Central.
Amp’d Mobile said it plans to deliver video clips, ringtones, ringback tones and wallpapers from 10 MTV Networks franchises. The companies will also develop short-form video content including interviews and behind-the-scenes clips exclusively for Amp’d Mobile subscribers.
Under terms of the deal, MTV Networks Chief Digital Officer Jason Hirschhorn will join the MVNO’s board of directors. The companies said they plan to develop joint marketing and promotional campaigns across MTV Networks’ brands and advertising channels.
The announcement marks a major win for Amp’d Mobile and a substantial move into mobile for the Viacom subsidiary. MTV previously teamed with Virgin Mobile USA L.L.C. to offer ringtones and other branded content, and the company is one of a handful of high-profile media companies already producing content exclusively for mobile users.
“When we began this company, partnering with MTV Networks was our No. 1 goal,” said Amp’d Mobile’s Adderton. “With MTV Networks’ investment, we’re also assured the ongoing involvement of the world’s foremost youth culture experts. This is a big win for us.”
MTV also hopes to make an upcoming digital music service available to Amp’d Mobile subscribers.
