NorthPoint shutting down network; AT&T buys assets

DSL provider NorthPoint Communications this week revealed that it has been unable to find long-term financing and will shut down its national DSL network.

AT&T will buy NorthPoint's assets for approximately $135 million, the companies announced Thursday. The deal includes NorthPoint's co-location sites, some network equipment, systems and support software, and other assets, but AT&T will not keep the NorthPoint network operating. AT&T intends to use NorthPoint's assets to offer DSL to consumers rather than businesses, which make up most of NorthPoint's customer base.

NorthPoint declared Chapter 11 bankruptcy in January. At that time company officials said they hoped the bankruptcy process would buy NorthPoint time to find either financing or a partner to keep the company operating. Unfortunately, no one stepped up to the table.

NorthPoint has ceased taking new DSL orders and will install no more lines past this week. The provider says it will work with its ISP reseller partners to transition NorthPoint customers to other DSL networks.

Like all competitive DSL carriers, NorthPoint has been hurt recently by the lack of available venture capital in the market.

Last year, a negotiated merger between NorthPoint and incumbent local exchange carrier Verizon fell through after Verizon pulled out of the deal, leaving NorthPoint in a financially precarious situation.

NorthPoint: www.northpoint.net

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Contact Senior Writer Michael Martin

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