Search /
Docfinder:
Advanced search  |  Help  |  Site map
RESEARCH CENTERS
SITE RESOURCES
Click for Layer 8! No, really, click NOW!
Networking for Small Business
TODAY'S NEWS
How a cyber cop patrols the underworld of e-commerce
For Red Hat, it's RHEL and then…?
Will the Internet of Things Become the Internet of Broken Things?
Kill switches coming to iPhone, Android, Windows devices in 2015
Galaxy S5 deep-dive review: Long on hype, short on delivery
Google revenue jumps 19 percent but still disappoints
Windows XP's retirement turns into major security project for Chinese firm
Teen arrested in Heartbleed attack against Canadian tax site
Still deploying 11n Wi-Fi?  You might want to think again
Collaboration 2.0: Old meets new
9 Things You Need to Know Before You Store Data in the Cloud
Can Heartbleed be used in DDoS attacks?
Secure browsers offer alternatives to Chrome, IE and Firefox
Linksys WRT1900AC Wi-Fi router: Faster than anything we've tested
Heartbleed bug is irritating McAfee, Symantec, Kaspersky Lab
10 Hot Hadoop Startups to Watch
Server makers rushing out Heartbleed patches
Fortinet, McAfee, Trend Micro, Symantec, Bitdefender battle in socially-engineered malware prevention test
Net neutrality ruling complicates US transition to IP networks
6 Social Media Mistakes That Will Kill Your Career
Canonical's new Ubuntu focuses on the long haul
4 Qualities to Look for in a Data Scientist
Big bucks going to universities to solve pressing cybersecurity issues
Mozilla appoints former marketing head to interim CEO
Box patches Heartbleed flaw in its cloud storage systems
/

RIM carrier Motient files for bankruptcy

Today's breaking news
Send to a friendFeedback


Wireless network provider Motient filed for Chapter 11 bankruptcy Thursday.

Motient, the former Ardis paging network started by Motorola and IBM, is best known as one of two wireless data service providers for the Research in Motion (RIM) handheld devices.

The other wireless data network offered by RIM is Cingular Wireless' Mobitex network.

Motient announced that a majority of its senior note holders "agreed in principle to the terms of debt restructuring."

Under the restructuring, the note holders will accept an equity position in the company in exchange for the notes. If approved by the court, the restructuring plan will also allow Motient to eliminate $40 million in annual interest payments.

Motient CEO Walter Purnell said that the deal will allow Motient to continue uninterrupted service to 250,000 subscribers.

But one well-respected wireless industry analyst said that Motient will have a tough road ahead as similar services are offered by the major cellular carriers.

"Both 2.5G and 3G will leave the Motient network as well as Cingular's Mobitex [paging network] at risk," said Gerry Purdy, president of Mobile Insights in Mountain View, Calif.

Both paging networks are proprietary, and non-IP, said Purdy.

"They have only a niche capability. This is a paging network, not a robust network," Purdy added.

Others go even further and say that if RIM is not able to move in step with the direction of the market, its future is also in question.

"In order for RIM to survive, it must morph itself into a serious platform player in the high-speed 3G world. They have to become a software company, not a hardware company and if they don't they may not survive," said a source who asked not to be identified.

Motient believes it will emerge from Chapter 11 by next quarter, according to a statement issued by the company.

InfoWorldFor more enterprise computing news, visit Infoworld.com Copyright © 2002 InfoWorld Media Group, Inc.

 


RELATED LINKS


NWFusion offers more than 40 FREE technology-specific email newsletters in key network technology areas such as NSM, VPNs, Convergence, Security and more.
Click here to sign up!
New Event - WANs: Optimizing Your Network Now.
Hear from the experts about the innovations that are already starting to shake up the WAN world. Free Network World Technology Tour and Expo in Dallas, San Francisco, Washington DC, and New York.
Attend FREE
Your FREE Network World subscription will also include breaking news and information on wireless, storage, infrastructure, carriers and SPs, enterprise applications, videoconferencing, plus product reviews, technology insiders, management surveys and technology updates - GET IT NOW.