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Cell Phones

Ikea Launches Its Own Cell Phone Service

We figure that you've already made ten jokes in your head by now after reading the headline -- you know, about how the phones come in thirty pieces, have diabolical names like "Kramfors," and look like they belong in dorm rooms -- so we're going to spare you and get straight to the point for a change of pace.

The furniture empire's UK division has launched an MVNO on T-Mobile's backbone (not to be confused with those little Ikea Mobile kiosks in the US) that follows its sofa mantra to the letter: cheap and simple. It's a prepaid service that requires an initial £10 (about $20) investment, and if we had to guess, the phones themselves are probably about as basic as they come. Would we buy a Samsung "Ektorp"? Hell yeah, we would.

Cell Phones

Is Helio Going Out of Business?


It ain't over until it's over, but we just got word that Helio store managers received notification this week that the axe is finally falling: (at least some of) the nationwide chain of retail stores will be shuttered during Virgin's takeover of Helio. As we've heard, "there is no 'merge' in this merger," so it sounds like after this year's big executive reshuffle, SK Telecom (which owns a majority stake in Helio) is bailing on their half-billion dollar enterprise a big way. No word if the fabled Ocean 2 will make it -- or if Virgin will even let Helio customers keep their phones.

Alongside Helio -- more or less the last man standing -- the great MVNO goldrush also dies. Unfortunate that besides Virgin and a few local and M2M providers (like Amazon's Whispernet), pretty much no one was able to make it work. Then again, no one ever never said making cellphones and running any kind of carrier was easy.

Cell Phones

Amp'd Files for Bankruptcy Protection


Well, it looks like Amp'd Mobile is having a little trouble doing what businesses are supposed to do -- namely, make money. Earlier today, the youth-oriented MVNO (Mobile Virtual Network Operator) filed for Chapter 11 bankruptcy protection.

MVNOs are essentially boutique mobile operators that use the networks of the large and established carriers, but offer distinct content, handsets, and calling plans. So even though Amp'd may look like a completely different carrier, it actually uses Verizon's network. Other examples of MVNOs include Helio (which uses Sprint's networks), Voce (uses AT&T/Cingular's network), and Virgin Mobile (uses Sprint's network).

Amp'd owes $33 million to Verizon and $16 million to Motorola (which makes its handsets), among other debts. In total Amp'd is about $100 million in the hole, which is more than its total assets.

As is the case with many companies that file for Chapter 11, Amp'd is not down completely, it's just buying time. If you have an Amp'd Mobile phone, rest easy -- your service isn't going anywhere, for now. Amp'd's stumbling is just the latest case of a much-hyped MVNO going bust (last year, ESPN Mobile closed down, only to be reborn as a service on Verizon Wireless handsets.)

Amp'd will begin to reorganize in hopes turning a profit -- or at least being able to pay its bills -- but the niche appeal of most MNVOs is proving not to be the best business model on earth.

We like MVNOs, since they're like indie, customer-driven alternatives to the big behemoth major carriers, so we're keeping our fingers crossed for Helio and Virgin Mobile, among the few left that so far are at least keeping up appearances of solvency.

From The New York Times, CNET, and Engadget.

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