Phone company United Systems Access Telecom said Tuesday that it signed a definitive agreement to acquire strategic wireless assets of Amp’d Mobile, the bankrupt wireless venture with about 175,000 subscribers that were in danger of losing service this week.
“Amp’d Mobile worked diligently on an agreement that would guarantee continuity of service for their former customers and a way to seamlessly transition to a compelling offering with the same rewarding user experience they have always enjoyed,” USA Telephone CEO Bill Fogg said in a prepared statement.
Terms of the acquisition were not immediately available. USA Telephone said it has 130,000 customers nationwide.
Last month, Los Angeles-based Amp’d filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware. The startup -- which targeted young men with a mix of video clips, games and music content -- used Verizon Wireless’ network and owed the carrier around $54 million as of July 23, according to bankruptcy-court documents.
Verizon Wireless July 25 received approval from the bankruptcy court to suspend service to Amp’d customers this week unless Amp’d could find a buyer for its user contracts.
USA Telephone said Prexar “provides service on the same network as Amp'd,” indicating that it also uses Verizon Wireless’ backbone. Prexar requires customers to pay with a credit card one month in advance, with plans starting at $40 per month for 450 minutes.
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