Amp’d Still Alive

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Amp’d Mobile was able to keep its doors open, and phones working, for one more week as Verizon agreed Monday afternoon to keep data and phone service up and running on the network it leases to the Los Angeles startup.


The troubled cellular service provider, which is a joint venture between Verizon Communications Inc. and Britain’s Vodafone Group PLC, got a notice last week that Verizon, which supplies Amp’d with its cellular network, was seeking to shut off the service immediately due to unpaid bills.


Verizon filed a motion in a Los Angeles court last week saying Amp’d should not be allowed to operate because it had racked up more than $16 million in charges for use of the Verizon’s network since its bankruptcy filing nearly two months ago.


Verizon added that the $16 million was in addition to $40 million in other charges the cellular carrier claims the startup already owed. Verizon also complained Amp’d had failed to secure debtor-in-possession financing or any type of loan to pay its bills.


The move to keep the network up is something of a surprise. It still says on Amp’d Mobile’s Web site that all service was to stop as of midnight last night, and goes on to say that business operations will stop on July 31st.


The Web site still recommends that customers get their phones activated through another service provider. The site also says customers with prepaid minutes will lose any unused minutes.


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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