Verizon Threatens To Shut Off Amp'd

posted Jun 5, 2007, 10:50 AM

Verizon threatened to disconnect Amp'd after they filed bankruptcy on June 1. Among its debts, Amp'd owes Verizon the most - $33 million. A short time ago, Verizon asked Amp'd for a payment of $4.5 million within 10 days, which they could not pay, forcing the MVNO to declare bankruptcy. The threat to shut off the network came after the official filing for bankruptcy and may be part of legal steps Verizon must take to protect itself. Amp'd is asking the court to make sure the network agreement and service continues during proceedings. Yesterday's documents also reveal that Amp'd's growing pains were an increasing number of non-paying customers, most of whom are in 18 month contracts, which was expected reach 80,000 by the end May.

more info at Business Week »

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