Amp’d Mobile’s temporary reprieve

Amp’d Mobile Inc. subscribers scored a slight reprieve as the MVNO said today it will continue to offer voice calling services at least until July 31, according to a spokesperson for the troubled mobile virtual network operator.
However, the MVNO is not offering its customers full access to its services; no content purchases are being processed through its Web site, and its customer service was halted as of yesterday.
The Amp’d spokesperson said the weeklong extension was related to a potential auction of the company’s assets in bankruptcy court, but did not provide additional details.
Amp’d yesterday notified its customers that it may shut down service as of this morning due to continued requests from its carrier host, Verizon Wireless, for payment on network costs. Verizon Wireless has said that Amp’d Mobile-which runs its services over Verizon Wireless’ network-is currently running up network access costs of $370,000 per day.
Amp’d Mobile filed for Chapter 11 bankruptcy protection last month.
In court filings yesterday, Verizon Wireless also voiced concerns about allowing Amp’d Mobile to sell its assets at auction. Among the potential problems, according to Verizon Wireless, is the MVNO’s inventory of an estimated 20,000 Motorola Inc. E816 handsets (which Amp’d Mobile sold under the name Hollywood). Verizon Wireless said the phones contain faulty software that can cause interference on Verizon Wireless’ network by constantly pinging the network, even after service to the handset is discontinued. Verizon Wireless said the phones also suffer from dropped-call problems.
Verizon Wireless said the E816 problems existed prior to the MVNO’s bankruptcy filing, and Amp’d Mobile had been working with Verizon Wireless on the issues. The carrier said that if the phones are sold and then activated, the additional influx of faulty handsets could threaten Verizon Wireless’ network.
“Verizon Wireless has reason to believe it (the phones) could also impose a threat to any other CDMA provider,” the company added in its objection to the auction.