MVNO struggles continue: Amp’d files for bankruptcy protection: Company will continue operations

Mobile virtual network operator Amp’d Mobile Inc. filed for bankruptcy protection over the weekend, claiming its back-end systems have been unable to keep up with the company’s rapid growth.
The MVNO said in a statement that it expects to continue normal operations during the reorganization.
“We are taking this step as a necessary and responsible action to sustain and strengthen our momentum in the market place,” the MVNO said, adding that its senior management “remains largely intact” but not specifically mentioning any changes that have been made. Representatives from Amp’d were not immediately available for comment.
Amp’d was the first of the new generation of MVNOs to make its customer numbers public, and most recently said it was close to 200,000 subscribers after a strong first quarter. The company launched service in December 2005 and steadily added to its distribution, plan types and content offerings. It has been particularly successful with its Amp’d Originals content; its “Lil’ Bush: Resident of the United States” cartoon mobisodes sparked the development of a Lil’ Bush half-hour television show which will premiere on Comedy Central on June 13.
The new generation of aspiring MVNOs has so far not yet spawned a new success on the level of Virgin Mobile USA L.L.C., and the difficulty of the business model has become increasingly apparent. The Walt Disney Co. decided to shutter its Mobile ESPN MVNO late last year in favor of licensing the central application and content to Verizon Wireless. The cost of running high-end Helio L.L.C. has been progressively affecting the financial performance of parent company EarthLink Inc.