26 June, 2013

by Updated on 26 June, 2013 Leave a Comment

Bankrupt Mobile Companies That Changed Mobile Industry

Even the most promising mobile business plan can go awry. From identifying untapped customer markets to leading the charge in innovative technology, many mobile upstarts have gone under despite a hot start. Take a look at the five mobile bankruptcy filings to see where it all went wrong.

The mobile telecommunications market is growing at a rapid rate. According to CNN Money, global mobile data usage is expected to double each year from now until at least 2016 at its current pace. With major mobile carriers leasing network space for smaller niche companies to encourage a competitive marketplace, there's bound to be some that simply bit off more than they could chew.

Amp'd Mobile

Amp'd Mobile was one of the hottest specialized cell phone service companies in the market. A virtual service provider, Amp'd leased network capacity from major carriers to serve the younger segment of customers.

An aggressive ad campaign saw Amp'd bring in an unprecedented wave of subscribers, most of whom were on 18-month contracts, according to Bloomberg Businessweek. By May of 2007, nearly half the company's subscribers had stopped paying, forcing Amp'd into bankruptcy by June.

Willcom, Inc.

Willcom, Inc. Provided service to customers in Japan uses Personal Handyphone System technology, a cheaper alternative to traditional networks. Willcom managed to become the largest provider in Japan using PHS technology.

Despite its low prices, Willcom struggled when the company tried to expand data available to customers to compete with other mobile providers. Willcom filed for bankruptcy in 2010 but was eventually bought by rival, Softbank in the same year.

Movida Communications

Movida Communications was a partner of Sprint's, out of Kansas City that aimed to serve the Spanish-speaking population in the area. While Movida proved that the Hispanic community is an under-served market with its more than 200,000 customers, area competition and Sprint's restrictions put Movida into bankruptcy in 2008.


LightSquared was a mobile communications provider for government and commercial industries based out of Virginia. The company entered bankruptcy in 2012 because federal regulations were preventing it from creating a 4G satellite network due to fears it would interfere with global positioning systems.


Mfone was one of six mobile networks in Cambodia. In early 2013, Mfone had to enter bankruptcy because its parent company, Thaicom, was unable to complete an expected sale deal in time. Mfone's customers are currently being transferred to rival, Mobitel.

The failure of many mobile companies involves flaws in the basic business model. Smaller carriers simply can't offer the same level of variety of features and coverage as the major carriers, so they must make up for it in price or niche marketing.

A smaller mobile provider often offers deals and other worthwhile offers to lure customers away from larger carriers. A prospective customer should research rate compare before committing to a particular service.

About the Author

This is a guest post by Celina Jones . She has been following the mobile communication industry for years and has researched the news that SimOnly-Deals.com specializes in the SIM only deals that can be used as an alternative to expensive contracts which come with handsets. She enjoys writing about mobile industry trends.

About The Author
Passionate Technology Blogger. Not a profession. Find only real life useful and simplified Tech articles, How-To's on TopTrix.


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