Amp'd, one of the edgier and "cooler" MVNOs, has taken a pretty serious hit. The article in the WSJ points out the difficulties of bringing predominantly "web" content to the third screen. As the article points out, "While the number of U.S. cellphone users has been steadily growing,
relatively few of them regularly use cellphones to watch TV and listen
to music." Thus, the high spend on marketing and customer acquisition.
The questions here are: Does "getting out of the wireless business" and into developing original content for cellphone users make sense? Is the company's core competence creating original content, presumably for the mobile handset user?
Amp'd Mobile Files Chapter 11 - WSJ.com Start-up wireless carrier Amp'd Mobile Inc. filed for Chapter 11 bankruptcy protection Friday night after it ran out of cash and failed to raise additional funding in time to meet debt payments. With its filing, Amp'd Mobile becomes the latest of several wireless ventures to stumble in the effort to bring video, music and other content to cellphones.
Amp'd Mobile offers a wide range of videos, music and games to distinguish itself from other wireless carriers. But it is fighting over a relatively thin slice of the wireless market. While the number of U.S. cellphone users has been steadily growing, relatively few of them regularly use cellphones to watch TV and listen to music.
...
Amp'd Mobile's Chapter 11 filing also came after a
protracted board fight over the company's direction and additional
funding, according to a person familiar with the situation.
It has attracted $360 million in funding from some of
the largest media and technology companies and well-known
venture-capital firms, as well as hedge funds and private-equity firms.
While Amp'd Mobile is growing fast, it requires
significant capital for marketing and customer acquisition. A few
investors questioned if the company should get out of the
wireless-service business and focus on developing original content for
cellphone users instead.
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