Just wanted to pass along this article about the
woes of Northpoint and MSN. Eeesh.
-Scott
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AT&T-NorthPoint To Curtail Service
By BRUCE MEYERSON
AP Business Writer
NEW YORK (AP) via NewsEdge Corporation -
More than 100,000 subscribers to high-speed DSL
Internet access will have their service turned off next week as a
result of AT&T Corp.'s deal to acquire a bankrupt DSL provider's
network assets.
Microsoft's MSN is among the several hundred DSL providers that
delivered the service over network equipment operated by San
Francisco-based NorthPoint Communications Inc., whose assets AT&T
is buying for $135 million.
AT&T decided not to acquire NorthPoint's wholesale business in
negotiating the deal announced late Thursday, and without enough
funds to keep its network running, NorthPoint immediately notified
service providers of an ``imminent'' shutdown.
MSN and other NorthPoint customers contacted their subscribers
on Friday to warn that DSL service would soon be halted.
``I regret to inform you that MSN will soon be temporarily
unable to provide you with MSN HighSpeed DSL service,'' MSN vice
president Ted Kummert said in a letter to subscribers posted on the
Internet.
MSN, which launched its DSL offering in October, offered its
7,000 DSL subscribers six months of free MSN dial-up service and
reimbursement for any related equipment purchases.
DSL, which stands for digital subscriber line, is connected to a
computer over a regular phone wire, but can carry data up to 25
times faster than a regular dial-up connection.
AT&T said Friday it decided that the acquisition of NorthPoint's
customer base didn't mesh with its plans to roll out its own DSL
service.
``We are not interested in wholesale. We are interested in DSL
for consumers,'' said AT&T spokesman Mark Siegel. ``These are
mainly business customers that NorthPoint has, and our focus
primarily is to use NorthPoint's assets for residential service.''
Before the AT&T deal was announced, NorthPoint was publicly
optimistic that the company's entire operations would be acquired
as part of the bidding for its assets.
``There was a letter written to customers that looked very
positive, and folks we talked to at NorthPoint said that it looked
likely the network would continue to function as it had been,''
said Bob Visse, group product manager for MSN. ``We do know that
there were several potential suitors out there who were interested
(in buying all of NorthPoint) and it looked very good.''
MSN and other NorthPoint customers said they are discussing new
relationships with other DSL carriers, but it was unlikely those
arrangements would be worked out quickly enough to avert an
interruption in service.
``We had already started this process before this news hit, and
we're working working as fast as we can to get another broadband
solution in place for customers,'' said Visse.
Public Access Networks Corp., a New York-based Internet services
provider also known as Panix, said in a posting on its Web site
that it ``is making every possible effort to protect its customers
who are on the NorthPoint network. This includes exploring options
to connect them via Covad and Rhythms,'' two other DSL carriers.
But, the note added, all such options would still involve a
service disruption and cautioned that ``at this moment, everything
is very tentative and we do not have firm commitments or
solutions.''
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