Ten days to make up $4.5 million probably isn’t going to happen when half of your subscribers aren’t paying their bills, especially when you’d have another $28.5 mil to pay after that. Will this poor experience turn Verizon and other carriers off of supporting future MVNOs? Maybe not, if they can just scoop ‘em up afterwards.
Amp’d has been exceptionally successful in getting its subscribers to use data services, which are expected to become the wireless industry’s growth engine in the coming years. In the first quarter of 2007, Amp’d users downloaded twice as many videos, songs, and games as in the fourth quarter of 2006. In addition, Amp’d's unique content and a multimedia application it has leased to carriers in Canada and Japan could help enrich Verizon’s offerings, says Dipanshu Sharma, founder of V-Enable, a mobile search company that works with numerous carriers (see BusinessWeek.com, 11/1/06, “Amp’d to Tap Japan’s Mobile Market,”). A well-oiled wireless machine, Verizon may have the knowhow to fix Amp’d's operational problems.
Just think of Verizon like the mob. Not the angry mob that breaks your thumbs if you can’t pay up – the nice one that indentures you for the rest of your life, and only threatens to break your thumbs if you try to skip town. Welcome to the family, Amp’d.