Blog Post

Audio Interview: Peter Adderton, Former CEO, Amp’d Mobile

imageA wide ranging interview with Peter Adderton, the former founder and CEO of Amp’d Mobile, whose bankruptcy auction proceedings will start tomorrow morning in court. I spoke to him earlier this evening on phone..below are the choice quotes and you can also download the audio from the link below:

— Our original idea was to build a mobile media company, and building an MVNO was the starting point.
— The thing that took us longer than expected was the technical side of it: there was no one outside of ourselves to go look at. A lot of things we had to go out and create … that took extra time and extra capital for the company…More after the jump…

— As a content provider knows, trying to get distribution on carrier decks is very difficult. At the time, it was the right decision for us to create and control our own destiny.
— I am still the chairman and director of Boost Mobile in Australia, and there it is doing very well.
— At Boost, we did have a massive amount of challenges when launching, but we didn’t have a large amount of shareholders around the table looking for results and returns … also we weren’t so much focused on raising capital … we were out there running the business.
— You don’t raise $400 million in 18 months by spending time inside the office. Trying to ambitiously raise that amount of money, while at the same time trying to create something new and different, was a challenge that caught up with us in time.
— On the financing, we were learning as we went along. With the amount of cash that we required, it probably made more sense to go with one or two big pockets than a lot of smaller pockets.
— The biggest struggle I had [with the board] was agreement on where the company should go. We had way too many board members and then we had observers at top, and then any partner could dial in, to a point where it became very difficult for the management to manage.
— I tried to bring in strategic with VCs, with hedge funds, and that either works very well, or doesn’t work at all; there is no in-between. We got caught in that perfect storm.
— I would put down the failure of Amp’d to be more of a financing issue as opposed to an operational issue. I am not debating the fact that Amp’d had some operational issues.
— Billing and collection: What we initially built the system it worked fine, but when Bill [Stone] and Sue [Swenson] came in and saw that we needed to change it to scale. It takes months to change a billing vendor and we had a team working on that, while at the same time we were loading on the customers at a great rate. In 17 weeks, we got 100K subscribers, and little problems in billing and collections suddenly became bigger problems. It wasn’t just customers with bad credit, but it was customers with high credit who just weren’t being billed at all.
— We had a handle on the fixes, but just didn’t have enough runway to get those implemented. At the end of it, we grew too fast. We were given weeks, not months to get these problems fixed.
I think Verizon Wireless got a bad rap out of this for no reason. Verizon did a lot to help us through the hard times. I do believe Verizon got the bad end of the stick on this.
— I would be delighted to see the Amp’d Live (the mobile media part) of the business continue on.
— What Helio is trying to do, similar to what Amp’d was trying, is exactly on the right path. The difference between Helio and Amp’d it that Helio has two shareholders that are willing to ride this through and make sure that it gets out the other end.
— The end result for me would have been to see Amp’d become a new digital media company, and be taken out by a media company, as opposed to a wireless company. Whether EVDO, Wi-MAx, Wifi or broadband, for me it was more about what was going though that pipe and how you experience the UI, than the pipe itself.
About the story on his personal helicopter and the expenses: I have been flying for 20 years and have had the helicopter for much before I started Amp’d. We did sell Boost, and we did make money out of it, and I’m still involved with Boost in Australia.
— Anyone who knows venture capitalists know that the day they put one dollar of their money into jet fuel will be a cold day in hell.
— The one thing I have learned about the media is that you have to take the good with the bad: when you’re on the rise everyone’s there for you, and when you are going down, everyone’s there to kick you down.
— I want to continue with a team to build out what we set out to build. The more wireless pipes that are built, the more there will be a need for organization and aggregation of content. But I won’t be out there raising $400 million again.

You can stream the full interview below, or download the MP3 from here (32 mins, 12.8 MB).

15 Responses to “Audio Interview: Peter Adderton, Former CEO, Amp’d Mobile”

  1. I heard that Peter Adderton is in talks with another carrier and a strong financial backing this time and are bringing back amp’d Mobile but are calling it something else. they are bringing back similar content and a lot of social networks content. we’ll see what happens but I work for one of the investors backing Peter Adderton (I cant disclose which one) and from the paper work I have seen it looks like a deal is almost done and we could be seeing Ampd style service brought back to life. From what Ive seen the investing is heavily focused on customer service and phones. services will be provided online and through retail stores.

  2. Mike Reed

    Peter
    Why were you so dishonest with your distributers? I lost everything because i beleived in you and your cronies who lied to me. I was number 11 on your list of the top 20 people to be screwed by ampd. But in the end i should never have listened to a blowhard idiot like you. you didnt know what you were doing and you still dont…
    heres hoping you helicopter runs out of gas… in the air

  3. We tried to do a JV with Amp'ed in the fall on 2006 but found it very hard to get any movement on their side. I even met Peter briefly at CES Jan. '07, but by then I think they were struggling.

    I really think a User Generated Content initiative (which is what we do) would have helped AMP'd greatly.

    In addition, look what our games have done in the iPhone world.

    Good luck in the next venture.

  4. I bought an Amp'd phone and submitted my rebate with ALL of the required materials. I practically sent the entire box with my submission. Instead of getting my $100 rebate, Amp'd returned to me a postcard falsely accusing me of not including a UPC. When they went under, I lost the $60+ dollars I had on my account.

    Amp'd STOLE my money.

  5. I got a phone call yesterday from Amp'd threatening my credit if I will not pay for SERVICE till mid August. I always paid my bill on time and disconnected my service on July 24 after they sent a text that service might be interrupted. Now, how the hell can these bastards force to pay for services they never provides. This is the ripoff of the century. Is there something that I can do about this.

  6. I wrote a review on my own personal Amp'd mobile experience a year and a half ago while working for Organic. It's amazing that the review's thread still has people commenting – all of which are visceral in nature.

    My personal take from the first time I stepped into the world of telecom services, is that if you peel away all the telco layers, at the end of the day, they're fancy billing companies. If their billing infrastructure isn't up to snuff linear to their CRM infrastructure, then the carrier is going to crash and burn. No MVNO is as great a poster child than Amp'd for how things can go wrong if you can't bill and collect correctly.

  7. What about the Billing till 8/16 or asking why people are still being billed after proting their numbers and cancelling service. what about the threats of affecting peoples credit if they do not pay the bills that they are billing for when they stopped providing service or you took your number to another carrier.

    he still is flying his helicopter while the average folk that subscribed to Ampd are going to reap the ill affects of being threatened with having their credit ratings tarnished if they do not pay bills that are not correct.

    And how is the high credit rating customers not being billed anyones fault but ampd mobiles?

  8. Some other real questions that would have been worth asking:
    Why were rebates RARELY received?
    Why do people have to pay their finals bills through August for no service?
    Even if Adderton didn't know the answers, I'm sure you could have found the person at Amp'd who does (if you can contact Adderton).

  9. Doug Feith

    Point taken, no harm no foul. I shall swear off any further gratuitous ad hominem criticisms of individuals but please, Mr. Game Warden, I am not a disgruntled former Adderton employee nor do I have an axe to grind with Amp'd. I just demand accountability and honesty from business leaders — just like Wall Street does. Will anyone be fired for their investment decision in this clean-up in aisle 3? I doubt it, but questions need to be asked.

  10. Doug Feith

    What happened to Britt Hume's incisive and scathing comments on the Adderton interview? Adderton's a snake and he conned you guys royally…to the point that you have to practice censorship on your blog! Bring back Britt Hume — at least he calls a snake a snake…

  11. Rafat,
    Great Interview. I get Peter Adderton's challenges. Its a good road map for anyone that is in this new media space. Is small better? Very telling. Are big ideas out sized by infrastructure?

    Andrew
    Coffey
    Market News First