Amp'd Mobile files for bankruptcy protection

June 4, 2007 11:05 AM PDT Follow @nicoleleeCNET

(Credit: Amp'd Mobile)

You may have seen plenty of ads for Amp'd Mobile both in print and on the silver screen, but it looks like those ads simply weren't making them enough money. Amp'd Mobile, an MVNO targeting the young and urban, has filed for bankruptcy protection last Friday stating that their "back-end infrastructure was unable to keep up with customer demand." MocoNews.net reports that Amp'd Mobile apparently owes Verizon Wireless (the network they're piggybacking on) around $33 million, with several more million owed to other creditors. Ouch. Business is expected to continue as usual, but we can't help but predict its eventual demise. MVNOs seem to be hurting financially lately, as was shown by the early death of MobileESPN late last year.