Amp'd was a mobile virtual network operator (MVNO) that resold airtime on Verizon's network -- Amp'd is in bankruptcy and will soon be shuttering its doors. There's been a lot of speculation around the sustainability of MVNOs like Amp'd, and some of the figures reported by Fresh Inc. are disturbing:
As a part of a bankruptcy filing, Amp'd recently announced that it had
some 80,000 non-paying customers . . . this comes from a
company that, by the end of the first quarter of 2007, had just about
Ok, so doing the quick math, approximately 40% of Amp'd subscribers were delinquent -- I certainly wouldn't try to start a business with a delinquency rate that high. Fresh Inc. points out that Amp'd targeted a demographic segment that is traditionally pretty challenging and the vast majority of its contracts were pre-pay: essentially Amp'd went after a demographic with a pricing model that the big carriers weren't willing to cater to, and, no having the data from Amp'd, probably are not likely to target with this business model in the future.
I wonder what would have happened if Amp'd would have fired the 40% of its customers that weren't paying and focused on making the experience more remarkable for the customers that were not delinquent.
Link -- Fresh Inc.