Amp’d may turn off service tomorrow

Amp’d Mobile Inc. subscribers may find themselves without wireless service tomorrow, according to the mobile virtual network operator.
The MVNO has begun warning subscribers via text messages and its Web site that its service could go dark as early as tomorrow. The company also said it will discontinue its customer-service operations today.
According to a question-and-answer section on the Amp’d Web site, customers will not be charged early termination fees and can port their numbers to other carriers. If customers still have unpaid balances, they must work with a collection agency; if they are owed a rebate, credit or balance refund, they must file a claim with the bankruptcy court.
Interestingly, the news that subscribers might not have access to Amp’d as of tomorrow is not obvious on the carrier’s Web site. The home page continues to flash promotions (including one emphasizing various options for bill paying), and the information is located in a “customer Q&A” page linked from the home page.
The shut-down notice came after the struggling company asked a bankruptcy court judge last week for permission to sell its assets at auction. Amp’d said it wants to proceed immediately with the sale, according to court documents, and that it is talking with several possible buyers. A hearing in the case is being held today.
The ultimate fate of the MVNO’s subscribers may well hinge on today’s hearing.
Amp’d, which runs on Verizon Wireless’ network, filed for Chapter 11 bankruptcy in June; roughly half of the MVNO’s 200,000 customers were not paying their bills. The company had hoped to obtain debtor-in-possession financing to make its way through the bankruptcy process intact, but was unable to score the necessary funds. Meantime, Verizon Wireless made repeated requests to shut down service to the MVNO; Verizon Wireless has said that maintaining Amp’d service costs $370,000 per day.
Given Verizon Wireless’ requests, Amp’d said last week that its “ability to continue to operate was suddenly at risk” and the company “determined that it was in the best interest of the estate and its creditors to sell all or substantially all of its assets in a court-supervised auction process.”
The company’s assets, according to filings, include its inventory of handsets and accessories as well as studio equipment, office equipment and copyrighted content. Amp’d said that the assets might end up being sold to multiple buyers.