Date: Fri, 30 Mar 2001 02:04:43 -0600
From: OMNIport Technical Support 
Reply-To: OMNIport Technical Support 
Organization: OMNIport NETwork Services, Subsidiary of Caribe Enterprises, Inc.
X-URL: http://www.OMNIport.net/
Subject: Local loop provider bankruptcy information

Paraphrased from InternetWeek
Thursday, March 29, 2001, 2:20 PM ET. 

NorthPoint Shuts Down Network

By JADE BOYD

Bankrupt DSL provider NorthPoint Communications was forced to shut down
its network today after it failed to obtain the funding needed to keep
operating long enough to move subscribers to other networks.

AT&T bought NorthPoint's physical assets for $135 million in a bankruptcy
auction last week but the giant carrier did not want NorthPoint's 100,000
customers.

"The customer base, we felt, did not fit the retail-oriented business model
that we are pursuing, both to business customers and to consumers," said AT&T
spokesman Mark Seigel. "NorthPoint, as you know, is a wholesale company." 

Seigel declined to elaborate on what AT&T did purchase, but NorthPoint
reportedly has facilities in some 1,700 telephone central offices serving
up to 45 percent of the U.S.

Seigel said both AT&T's business service and consumer service units would
make use of the facilities. The sale is expected to close in about 60 days,
but Seigel said AT&T has not made a determination about when it will begin
offering DSL services. 

NorthPoint's failure has left ISP partners inlcuding MSN, Telocity and Verio
scrambling to move customers to other high-speed providers. 

NorthPoint had been negotiating with its ISP partners to raise enough cash
to keep its network operating for a few more weeks while customers moved to
other high-speed providers. In a written statement issued late Tuesday,
NorthPoint said it could not raise enough money to keep operating. 

"Absent funding, NorthPoint is taking immediate steps to take down service,"
the statement said. "NorthPoint advises its customers to expect network
outages and termination of DSL services immediately." 

NorthPoint filed for bankruptcy in January. Verizon Communications abandoned
plans to buy a majority stake in the company last November.