| Revision as of 13:41, 23 February 2006 edit68.34.232.115 (talk) original language had way too much of an agenda. very skewed.← Previous edit | Latest revision as of 17:54, 30 March 2024 edit undoMaxeto0910 (talk | contribs)Extended confirmed users94,614 edits added short descriptionTags: Mobile edit Mobile web edit Advanced mobile edit | ||
| (264 intermediate revisions by more than 100 users not shown) | |||
| Line 1: | Line 1: | ||
| {{short description|American company}} | |||
| '''InPhonic Inc''' (]: INPC) is a company that sells wireless services and devices ], both through its e-commerce site Wirefly and through private labeled websites it creates and manages for online ]ers. Partners include brands such as ], Cognigen, and AOLMobile.com and others, which sell ]s and cell phone service plans from major carriers like ], ], ], and others. In 2005, InPhonic sold its ], or MVNO, called Liberty Wireless. | |||
| {{Infobox company | |||
| | name = InPhonic | |||
| | logo = ] | | |||
| | vector_logo = | |||
| | foundation = <!-- this parameter modifies "Founded" --> 1999 | |||
| | founder = ] | |||
| | location_city = Washington, DC | |||
| | location_country = USA | |||
| | location = <!-- this parameter modifies "Headquarters" --> | |||
| | key_people = ], ], ], Ira Brind, Lawrence E. Harris, Blake Bath | |||
| | area_served = USA | |||
| | industry = Wireless | |||
| | products = Cell phones and wireless plans | |||
| | revenue = {{profit}}$320.5 million ] (2006)| | |||
| | operating_income = | |||
| | net_income = {{loss}}$38.2 million USD (2006)| | |||
| | num_employees = < 1,000 | |||
| | parent = | |||
| | divisions = | |||
| | owner = | |||
| | slogan = | |||
| }} | |||
| '''InPhonic Inc''' was an American company which sold wireless services and devices ], both through its own ] sites and through private labeled websites it created and managed for online ]ers. The company was headquartered in ] and maintained technology and operations centers in ]. | |||
| The wireless company, founded and headed by David Steinberg, went public in November 2004. The board of directors includes such notable names as would-be VP ] and ] (formerly of ] and ]). ] listed InPhonic as the #1 company of 2004. | |||
| ==History== | |||
| The company is headquartered in ] and maintains technology and operations centers in ], ] and ]. | |||
| InPhonic was founded in 1999 by ] who resigned in 2007 due to poor debt management and decreasing revenues. Its board of directors included former Vice-Presidential candidate ] and technology/marketing guru ] (of ] and ] fame). | |||
| The company was modeled after sites like ], gathering information from companies into a single site to help customers find deals by comparing services and prices. Wireless carriers did business with InPhonic because acquiring a customer through the company can be less expensive than traditional marketing approaches designed to generate sales at a brick-and-mortar store. InPhonic, in turn, received a commission from carriers for each new account generated, once the customer met a number of criteria. InPhonic helped grow this market for third-party activations to nearly 50% of all newly acquired cell phone subscribers in the U.S. | |||
| In addition to Wirefly, InPhonic operates some 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. The firm said in early 2006 that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. The company's Wirefly site has received a number of Internet awards, including ]'s Best of the Web for 2004. | |||
| The company's central online storefront, Wirefly.com, received a number of Internet awards, including ]'s "Best of the Web" for 2004 and Keynote System's "Best In Overall Customer Experience" in 2005. | |||
| InPhonic became popular for its aggressive pricing strategy, which includes "free cell phones after rebate" or discounts worth several hundred dollars. The terms of the rebates however require the customer to wait 180 days after activation, but no more than 210 days, to file the rebate. This unusual rebate model stems from the fact that the carriers will not pay a commission on a customer who does not maintain service for six months. | |||
| In addition to operating Wirefly.com, InPhonic powered the technology platform and fulfillment system of 6,000 other private label cell phone sales Web sites.<ref>{{cite web|url=https://www.forbes.com/personalfinance/2006/10/11/inphonic-goldmansachs-wireless-pf-guru_in_nh_1011unwiredportfolio_inl.html |title=Goldman Throws InPhonic A Lifeline |work=Forbes.com |date=2006-10-06 |accessdate=2012-05-04}}</ref> In early 2006, the firm claimed that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. In June 2006, the company said that it had completed more than 2.5 million cellphone activations in the past three years. | |||
| This strict requirement has fueled outrage among a group of customers who are calling for the regulation of rebate incentives by electronics manufacturers and retailers. | |||
| On November 8, 2007, InPhonic filed a voluntary petition for reorganization under ] of the U.S. Bankruptcy Code. The filings were made in the U.S. ] for the District of Delaware. The company's stock was later delisted by ]. Many of the assets of Inphonic, including its ] operations and its Wirefly.com web site, were subsequently sold to private investors who used those assets to launch the company ] in January 2008. | |||
| The ] has received a large volume of complaints about all wireless carriers and their authorized agents charging that their rebate claims were falsely denied. These claims are being investigated in several states. | |||
| ==Financials== | |||
| In September 2001, the company closed a $19 million Series D round of capital financing headed by Core Capital Partners. The investment also included new investors McAndrews & Forbes, First Analysis, Spring Capital and ]. All previous investors—including Sculley Brothers Investments, CMS Financial Services, and Mid Atlantic Venture Funds—participated as well. In 2003, ] invested an additional $56 million in the company. | |||
| The company went public in November 2004. The company raised $108.9 million through its initial public offering. The IPO was InPhonic's second attempt to tap the public markets; the company filed to go public in 2002 but canceled the offering because of stock market conditions at the time. | |||
| In November 2006, Goldman Sachs—one of InPhonic’s largest shareholders—made the company a proposal to provide it with $100 million in debt financing, part of which InPhonic used for a large stock buy-back.<ref>{{cite web|url=https://www.forbes.com/personalfinance/2006/10/11/inphonic-goldmansachs-wireless-pf-guru_in_nh_1011unwiredportfolio_inl.html?partner=links |archive-url=https://web.archive.org/web/20070520195210/http://www.forbes.com/personalfinance/2006/10/11/inphonic-goldmansachs-wireless-pf-guru_in_nh_1011unwiredportfolio_inl.html?partner=links |url-status=dead |archive-date=May 20, 2007 |title=Goldman Throws InPhonic A Lifeline |work=Forbes.com |date=2006-10-06 |accessdate=2012-05-03}}</ref> | |||
| In November 2007, InPhonic filed a ] petition in the ] for the District of Delaware. InPhonic, along with its co-debtors, requested that their cases be jointly administered under case number 07-11166.<ref> {{webarchive |url=https://web.archive.org/web/20080314235413/http://bankruptcy.morrisjames.com/2007/11/articles/wireless-service-provider-inphonic-files-chapter-11-petition/ |date=March 14, 2008 }}</ref> Related to the Chapter 11 petition, InPhonic agreed to sell substantially all of its assets to an affiliate of Philadelphia-based private equity firm Versa Capital. In December 2007, the company's stock was delisted by NASDAQ. | |||
| InPhonic attributed its bankruptcy filing, in part, to a recent default under a prepetition credit agreement, as well as illiquidity and declining revenues caused by unprofitable marketing activities and an inability to maintain adequate inventory of the most popular wireless devices. InPhonic’s top creditor list read like a who’s who of the nation’s top technology companies. ], ], ], ], and ] all rank among the debtor’s top ten creditors. | |||
| In January 2008, Versa Capital announced that InPhonic's assets and infrastructure were being used to launch a new company named ]. This new company was based in Reston, VA and led by CEO Andy Zeinfeld.<ref>{{cite web|url=https://www.reuters.com/article/pressRelease/idUS126905+07-Jan-2008+BW20080107 |archive-url=https://web.archive.org/web/20080110163936/http://www.reuters.com/article/pressRelease/idUS126905+07-Jan-2008+BW20080107 |url-status=dead |archive-date=2008-01-10 |title=Simplexity Launches as America's New Leader in Online Wireless Services |publisher=Reuters |date=2008-01-07 |accessdate=2012-05-03}}</ref> Simplexity's assets were subsequently purchased by ] in 2014. | |||
| ==Some cell phone sites which InPhonic operated== | |||
| Cell phone sites operated by InPhonic included: A1 Wireless, ACN Wireless, Cellular Buys, Cellular Choices, Corporate Wireless, FonCentral, INTELENET Wireless, Liberty Wireless, lowcostcells.com, Mobile Pro, Phone Deals, Simplexity, Talking on Air, Wirefly, Wireless Marketplace, WorldPerks Wireless Service, and Mylan Cellular. | |||
| ==Rebates== | |||
| InPhonic maintained an unsatisfactory rating with the ] serving Washington DC and Eastern Pennsylvania. Over the 36 months preceding October 2007 the BBB had processed 126 unresolved consumer complaints regarding selling practices, advertising issues, service issues among other areas of concern.<ref> {{webarchive |url=https://web.archive.org/web/20071013142609/http://www.dc.bbb.org/report.html?national=Y&compid=23004111 |date=October 13, 2007 }}</ref> | |||
| In April 2007, the FCC settled rebate related charges against InPhonic. The Commission alleged that InPhonic, in connection with its advertised rebate offers, failed to provide promised documents needed to obtain rebates, to send out rebate checks, and to adequately disclose material terms and conditions prior to consumers purchases. The FCC further alleged that InPhonic misled some consumers about the number of wireless bills that had to be submitted with their rebate application and misrepresented that consumers would have a reasonable opportunity to resubmit rebate applications that were deemed incomplete. | |||
| InPhonic was ordered to pay consumers who applied for a rebate with the company but were denied a check based on the company’s deceptive and unfair practices.<ref>{{cite web |url=http://www.consumeraffairs.com/news04/2007/04/ftc_rebates.html |title=Feds Slam InPhonic, Soyo for Deceptive Rebate Practices |publisher=Consumeraffairs.com |date=2007-04-27 |accessdate=2012-05-03 |url-status=dead |archiveurl=https://web.archive.org/web/20111008015332/http://www.consumeraffairs.com/news04/2007/04/ftc_rebates.html |archivedate=2011-10-08 }}</ref> | |||
| InPhonic earlier settled similar charges leveled by the District of Columbia attorney general. | |||
| A large number of InPhonic's customers complained about the non-fulfillment of rebates that were promised to customers. Many of these customers were listed as non-secured creditors in the company's Chapter 11 filing in 2007. | |||
| == Partnerships and affiliates == | |||
| InPhonic had established relationships with a range of e-commerce partners to provide wireless activation services. Its partners included high-profile brands such as ], ], ], ] and ]; industry players like Cognigen Networks and Intelisys; and major U.S. carriers ], ], ], ], ] and others. InPhonic also ran fulfillment for ]s like the ] and LG brands. | |||
| A deal signed with ] in April 2006 was the first deal for the company's mobile virtual network enabler (MVNE) division after the company shed its own ] (MVNO), Liberty Wireless, in 2005. | |||
| In April 2006, InPhonic finalized a partnership with ] to become Amazon's first third-party provider of wireless products.<ref>{{cite web|url=http://www.ecommercetimes.com/rsstory/50072.html |title=E-Commerce News: News: Amazon, Mylan Cellular, InPhonic Link Up in Wireless Phone Deal |publisher=Ecommercetimes.com |date= |accessdate=2012-05-03}}</ref> | |||
| ==References== | |||
| {{reflist}} | |||
| ==External links== | ==External links== | ||
| * | * | ||
| *, |
* | ||
| * | |||
| * | |||
| * | |||
| * | |||
| *, ''Washington Post, November 7, 2006. | |||
| * | |||
| * | |||
| * | |||
| ] | ] | ||
Latest revision as of 17:54, 30 March 2024
American company.gif) | |
| Industry | Wireless |
|---|---|
| Founded | 1999 |
| Founder | David A. Steinberg |
| Headquarters | Washington, DC, USA |
| Area served | USA |
| Key people | David A. Steinberg, John Sculley, Jack Kemp, Ira Brind, Lawrence E. Harris, Blake Bath |
| Products | Cell phones and wireless plans |
| Revenue |  $320.5 million USD (2006) |
| Net income |  $38.2 million USD (2006) |
| Number of employees | < 1,000 |
InPhonic Inc was an American company which sold wireless services and devices online, both through its own electronic commerce sites and through private labeled websites it created and managed for online retailers. The company was headquartered in Washington, DC and maintained technology and operations centers in Largo, Maryland.
History
InPhonic was founded in 1999 by David A. Steinberg who resigned in 2007 due to poor debt management and decreasing revenues. Its board of directors included former Vice-Presidential candidate Jack Kemp and technology/marketing guru John Sculley (of PepsiCo and Apple Computer fame).
The company was modeled after sites like Expedia, gathering information from companies into a single site to help customers find deals by comparing services and prices. Wireless carriers did business with InPhonic because acquiring a customer through the company can be less expensive than traditional marketing approaches designed to generate sales at a brick-and-mortar store. InPhonic, in turn, received a commission from carriers for each new account generated, once the customer met a number of criteria. InPhonic helped grow this market for third-party activations to nearly 50% of all newly acquired cell phone subscribers in the U.S.
The company's central online storefront, Wirefly.com, received a number of Internet awards, including Forbes magazine's "Best of the Web" for 2004 and Keynote System's "Best In Overall Customer Experience" in 2005.
In addition to operating Wirefly.com, InPhonic powered the technology platform and fulfillment system of 6,000 other private label cell phone sales Web sites. In early 2006, the firm claimed that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. In June 2006, the company said that it had completed more than 2.5 million cellphone activations in the past three years.
On November 8, 2007, InPhonic filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court for the District of Delaware. The company's stock was later delisted by NASDAQ. Many of the assets of Inphonic, including its electronic commerce operations and its Wirefly.com web site, were subsequently sold to private investors who used those assets to launch the company Simplexity in January 2008.
Financials
In September 2001, the company closed a $19 million Series D round of capital financing headed by Core Capital Partners. The investment also included new investors McAndrews & Forbes, First Analysis, Spring Capital and Wynnefield Capital. All previous investors—including Sculley Brothers Investments, CMS Financial Services, and Mid Atlantic Venture Funds—participated as well. In 2003, Technology Crossover Ventures invested an additional $56 million in the company.
The company went public in November 2004. The company raised $108.9 million through its initial public offering. The IPO was InPhonic's second attempt to tap the public markets; the company filed to go public in 2002 but canceled the offering because of stock market conditions at the time.
In November 2006, Goldman Sachs—one of InPhonic’s largest shareholders—made the company a proposal to provide it with $100 million in debt financing, part of which InPhonic used for a large stock buy-back.
In November 2007, InPhonic filed a Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. InPhonic, along with its co-debtors, requested that their cases be jointly administered under case number 07-11166. Related to the Chapter 11 petition, InPhonic agreed to sell substantially all of its assets to an affiliate of Philadelphia-based private equity firm Versa Capital. In December 2007, the company's stock was delisted by NASDAQ.
InPhonic attributed its bankruptcy filing, in part, to a recent default under a prepetition credit agreement, as well as illiquidity and declining revenues caused by unprofitable marketing activities and an inability to maintain adequate inventory of the most popular wireless devices. InPhonic’s top creditor list read like a who’s who of the nation’s top technology companies. MSN, Yahoo!, Google, America Online, and Verizon all rank among the debtor’s top ten creditors.
In January 2008, Versa Capital announced that InPhonic's assets and infrastructure were being used to launch a new company named Simplexity. This new company was based in Reston, VA and led by CEO Andy Zeinfeld. Simplexity's assets were subsequently purchased by Walmart in 2014.
Some cell phone sites which InPhonic operated
Cell phone sites operated by InPhonic included: A1 Wireless, ACN Wireless, Cellular Buys, Cellular Choices, Corporate Wireless, FonCentral, INTELENET Wireless, Liberty Wireless, lowcostcells.com, Mobile Pro, Phone Deals, Simplexity, Talking on Air, Wirefly, Wireless Marketplace, WorldPerks Wireless Service, and Mylan Cellular.
Rebates
InPhonic maintained an unsatisfactory rating with the Better Business Bureau serving Washington DC and Eastern Pennsylvania. Over the 36 months preceding October 2007 the BBB had processed 126 unresolved consumer complaints regarding selling practices, advertising issues, service issues among other areas of concern.
In April 2007, the FCC settled rebate related charges against InPhonic. The Commission alleged that InPhonic, in connection with its advertised rebate offers, failed to provide promised documents needed to obtain rebates, to send out rebate checks, and to adequately disclose material terms and conditions prior to consumers purchases. The FCC further alleged that InPhonic misled some consumers about the number of wireless bills that had to be submitted with their rebate application and misrepresented that consumers would have a reasonable opportunity to resubmit rebate applications that were deemed incomplete. InPhonic was ordered to pay consumers who applied for a rebate with the company but were denied a check based on the company’s deceptive and unfair practices.
InPhonic earlier settled similar charges leveled by the District of Columbia attorney general.
A large number of InPhonic's customers complained about the non-fulfillment of rebates that were promised to customers. Many of these customers were listed as non-secured creditors in the company's Chapter 11 filing in 2007.
Partnerships and affiliates
InPhonic had established relationships with a range of e-commerce partners to provide wireless activation services. Its partners included high-profile brands such as Radio Shack, Best Buy, Overstock.com, Buy.com and AOL; industry players like Cognigen Networks and Intelisys; and major U.S. carriers Verizon Wireless, Cingular, Sprint, T-Mobile, Alltel and others. InPhonic also ran fulfillment for original equipment manufacturers like the Motorola and LG brands.
A deal signed with Disney in April 2006 was the first deal for the company's mobile virtual network enabler (MVNE) division after the company shed its own mobile virtual network operator (MVNO), Liberty Wireless, in 2005.
In April 2006, InPhonic finalized a partnership with Amazon.com to become Amazon's first third-party provider of wireless products.
References
- "Goldman Throws InPhonic A Lifeline". Forbes.com. 2006-10-06. Retrieved 2012-05-04.
- "Goldman Throws InPhonic A Lifeline". Forbes.com. 2006-10-06. Archived from the original on May 20, 2007. Retrieved 2012-05-03.
- Archived March 14, 2008, at the Wayback Machine
- "Simplexity Launches as America's New Leader in Online Wireless Services". Reuters. 2008-01-07. Archived from the original on 2008-01-10. Retrieved 2012-05-03.
- Archived October 13, 2007, at the Wayback Machine
- "Feds Slam InPhonic, Soyo for Deceptive Rebate Practices". Consumeraffairs.com. 2007-04-27. Archived from the original on 2011-10-08. Retrieved 2012-05-03.
- "E-Commerce News: News: Amazon, Mylan Cellular, InPhonic Link Up in Wireless Phone Deal". Ecommercetimes.com. Retrieved 2012-05-03.
External links
- BBB Reliability Report of InPhonic
- Cell phone firm sued after Red Tape coverage
- Consumers irked by cell phone rebates on hold
- Washington Post profile of InPhonic
- InPhonic Settles Lawsuit Over Rebate Restrictions, Washington Post, November 7, 2006.
- Order Consolidating Class Actions against InPhonic in District of Columbia
- InPhonic corporate site including links to InPhonic bankruptcy filings