Verizon Moves to Shut Down Amp’d

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Amp’d Mobile, which is reorganizing in bankruptcy court, is in danger of being unplugged from Verizon Wireless, the carrier that provides its cellular network, according to court filings this week.


The filings indicated the telecom company is frustrated by the failure of Amp’d Mobile’s to pay for its daily service, which Verizon said amounts to $370,000 each day. Verizon also complained Amp’d has failed to secure a loan to pay its bills.


“Based on the record of this case this court should not permit this case to be run for a single additional day on Verizon Wireless’ back,” Verizon said in court papers.


Since its bankruptcy 45 days ago, Amp’d has racked up nearly $16 million in charges for use of the network, Verizon stated. This is in addition to $40 million in other charges the New York cellular carrier claims the Los Angeles-based startup owes. Verizon wireless is a joint venture between Verizon and Britain’s Vodafone Group PLC.


Amp’d Mobile’s Chief Executive Bill Stone said earlier this year that the company has burned through $350 million in investors’ money over the past four years.

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