We all heard the news: Amp’d Mobile has filed for Chapter 11 bankruptcy protection from creditors. Woe to the company who has joined the Lifestyle MVNO bandwagon which is inherently flawed in the first place.

For starters, MVNO (mobile virtual network operator) rides on top of major carrier’s network infrastructure, and basically resells call/SMS plans and value-added services (like mobile music or video-on-demand) but with a twist based on MVNO’s strategy.

For example, Virgin Mobile USA (using Sprint’s CDMA network) offers customers to purchase prepaid credits over the internet using debit/credit card or through PayPal (much like loadntxt.com). Amp’d Mobile which uses Verizon Wireless’ CDMA EV-DO network, meanwhile, offers downloadable video clips from select TV channels (such as MTV Mobile) through custom-built BREW apps called Amp’d Live.

While we have nothing against this technology, the basic question remains: Do we really need all this? All the average Joe needs is plain and simple: Reliable communication. Hence, call plans and SMS constitute the bulk of carrier’s revenues. Nothing more, nothing less.

Anything else are efforts bound for failure. Look at Helio. They are pouring so much money, keeping their fingers crossed with their Helio Ocean offering and yet, still struggling just to break even. Unlike the major carriers which can absorb all their losses for all their experimental offerings, MVNOs won’t recoup their investments unless they stick to the basics and offer innovative products or services intended for their market niche.

Amp’d Mobile’s experience only goes to show that what works in South Korea or Japan will not necessarily reflect in the United States. As they say, “It’s the economy, stupid”. Well, that’s how it works at least, in the US.