Source : Globe & Mail
Wireless brands come and go, but none as quickly as Amp'd Mobile Canada, whose in-your-face wireless service aimed at young males has disappeared after four short months.
Telus Corp., which handled distribution, customer care and billing for the upstart, pulled the plug yesterday morning. It stopped selling Amp'd Mobile Canada's products in its own stores and through other retailers, and turned off the lights at the flashy flagship store in Toronto's entertainment district, said Telus spokeswoman Julie Smithers.
For now, Amp'd Mobile Canada subscribers can still make calls and retrieve messages, but Ms. Smithers expects they will soon no longer be able to buy its quirky wireless content, such as wrestling in pools of margaritas or graphics of women in Marvel comics.
When that happens, Telus will contact Amp'd Mobile Canada's customers to discuss alternative wireless services, though she declined to say whether they will be offered any deals or breaks.
Telus's decision comes two months after Amp'd Mobile Canada's parent company in the United States filed for bankruptcy protection. Amp'd Mobile Inc. of the U.S. stopped offering customer service last week. Yesterday, however, U.S. carrier Prexar Mobile announced an agreement to buy some wireless assets from Amp'd Mobile Inc., which will allow service to continue.
"It's been an uncertain situation, and at this point we felt that it's best to discontinue sales in Canada," Ms. Smithers said yesterday. Calls to Amp'd Mobile Inc. and Amp'd Mobile Canada weren't returned. Ms. Smithers wouldn't comment on the status of Amp'd Mobile Canada's operations, or on the size of its subscriber base.
An employee at Amp'd Mobile Canada's Toronto store, which still had a "now open" sign in its window yesterday, said it was disappointing. "It was a great company to work for," said the employee, who didn't want to be named.
For cellphone giant Telus, Amp'd Mobile Canada's short life is more of an embarrassment than a serious setback. Unlike rivals, Telus took a long time to hook up with an outside company to expand its brand. Virgin Mobile Canada and Loblaw, for example, use the Bell Canada network for cellphone services, while 7-Eleven Canada's Speak Out service rides on Rogers Communications' Fido network.
"Telus, you could argue, picked the wrong partner," said Kevin Restivo at telecom consultancy SeaBoard Group in Toronto. However, he said "it was a low-risk gamble. Businesses invest in new ventures all the time. This one didn't happen to work out."
Telus had hoped to expand its presence in the youth market through the venture. As part of the deal, Telus invested $7.5-million (U.S.) in Los Angeles-based Amp'd Mobile Inc.
©
Globe and Mail