Omnisky Declares Bankruptcy, Sells Out to EarthLink
EarthLink, the U.S.'s second largest ISP, has agreed to buy just about all of OmniSky’s assets, including its subscriber base. As part of the transaction, OmniSky and EarthLink intend to transition OmniSky’s 32 thousand subscribers to EarthLink with the intention of continuing uninterrupted wireless service. As part of the deal, OmniSky, a wireless ISP, is declaring bankruptcy. This means the sale requires the approval of a bankruptcy court and a bankruptcy court-supervised overbidding process, where bidders with higher and better offers may emerge. Financial details of the deal with EarthLink were not given.
The Chapter 11 filing allows OmniSky to maintain its operations and continue to provide wireless service to its subscribers during the sale approval and transition process.
“This filing is intended to protect and maximize the value of our business for the benefit of all of our stakeholders and to preserve uninterrupted service for our subscribers until they can be transitioned to EarthLink,” said Patrick McVeigh, OmniSky’s Chairman and Chief Executive Officer.
While the bankruptcy court reviews the proposed sale to EarthLink and other offers that may emerge, OmniSky believes that it has sufficient cash on hand to finance its operations, including supporting the company’s post-petition trade and employee obligations, as well as its ongoing operating needs during the process.
The company has been struggling for a while. Last month, it failed to release a financial report for its most recent quarter, a violation of SEC rules. It has since been delisted from the Nasdaq.
In an interview with CBS.MarketWatch.com, Lance Weatherby, an executive VP of EarthLink Everywhere, said, "The primary reason we're doing this deal is because we like the product that it's created: great client-side software and nice user interface."
"OmniSky didn't take off because it cost $40 per month to get data services on a hand-held device. People want to pay $20 per month," said Mr. Weatherby, implying that the company intends to lower the subscription price.
Earlier this week, Yada Yada, an OmniSky rival, permanently stopped service.
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RE: Omnisky -- why a flop?!
RE: Omnisky -- why a flop?!
Also, if you did happen to live in the 5% of the country that was covered, the service was spotty at best. Not really Omnisky's fault, the technology is just not that good.
RE: Omnisky -- why a flop?!
I asked the clerk if buyers got, you know, PISSED, when they got it home and found out that they were a four hour drive to the nearest covered area.
I live in a major (not covered) city and I waited forever for this before it became obvious that it was never going to expand any further. That message about "now available in Orange county" has been there for, what?, a year?
I finally bought a nokia 8290 (IR port and built in modem) and have been using it to connect to the net with my Palm 505 (they have been promising those modems for quite a while now too) ever since.
RE: Omnisky -- why a flop?!
RE: Omnisky -- why a flop?!
RE: Omnisky -- why a flop?!
CGordonn
Omnisky - Not So Bad...
Will I upgrade to a new OS account when I move to new hardware? Probably not, unless I can get a good deal on a modem and a cheaper service plan. I'll probably move to a new cell phone that will connect to which ever PDA I buy next.
Mike
miknny@yahoo.com
RE: Omnisky -- why a flop?!
I could see paying $100-$200 for a wireless modem (with pass-through for the keyboard, please) and $20-$30/month for the service. Otherwise, I'll make do being tethered to my PC.
RE: Omnisky -- why a flop?!
RE: Omnisky -- why a flop?!
Why? Well, it certainly wasn't the cost, because I then signed up for a Blackberry, which I adore. Rather, to me at least, the problem with Omnisky was basically twofold (though, of course I would have liked it to be cheaper, too): first, though I live and do most of my work in New York City and environs, even here I found service much spottier than with a cell phone. When inside, the modem worked only near a window -- and then, only when the building was tall and not obstructed by other buildings. In a boardroom, or an interior office, or at a restaurant, you could be almost guaranteed that there would be no reception. And these are the places you really want service...to check to see if an important e-mail, or document or agreement has come in. Otherwise, what's the matter with waiting until you get back to the office, or just calling in for messages?
Second, the light notifying you of new mail almost never worked properly, meaning you had to turn your Palm on and download new mail manually, which for those of us who get 200 messages a day could amount to a heck of a long wait after a two hour meeting. In no way could Omnisky's service compare to the Blackberry which almost instantly lets you know of new messages.
I don't mean to advertise the Blackberry or unfairly malign Omnisky. I know many very happy users of Omnisky who need true TCP/IP connections and who greatly value the service. And certainly, not everyone needs all of their e-mail 30 seconds after it arrives, as is the case with the Blackberry.
It's just that I can easily understand why the appeal of EITHER of these services is so limited right now. Too many people just don't see the point.
Someday soon, with 3G service, I guess, there will be a company/hardware/wireless service which gets widespread acceptance. It's just that, at the moment, the appeal of such services and devices is limited to very early adopters who will overlook inconvenience and limitations to squeeze out the value they need.
Someday, there will be a value that many people actually WANT.
Dan Prizer
RE: Omnisky -- why a flop?!
I hope Earthlink does at least as well by us but I'm not holding my breath.
Omnisky in Atlanta
Until the B-side carrier can be prodded to deploy CDPD, Earthlink won't be able to provide that service around Atlanta, even though there does seem to be demand. Too bad.
RE: Omnisky -- why a flop?!
Stand-Alone wireless data will never work...
RE: Stand-Alone wireless data will never work...
Oh, and, without interruption? Not. Their email server has been in the toilet for much of this week with regards to connecting to non-OS POP 3's, and they have cut their 24 hr tech support.
Seeya!
Reinventing the wheel.
Spend a day hunting down cellphone towers. Do you realize just how many of those things there are in your average city?
Here's a map of downtown Vancouver, BC to give you an idea:
http://geckobeach.com/cellular/maps/vancouver/vancdown.htm
Then remind yourself how bad celphone coverage can get in most cities.
Keep in mind that those OmniSky nodes are probably $2000/ea, at least, throw in the cost of tower rental, and access for all the points...
Is it any wonder why prices were high, nobody was turning a profit and coverage was so lousy?
The Treo inventors have the right idea - piggyback on an exsisting network.
As far as prices - Isen't G3 supposed to exponentially increase the amount of data bandwidth available per node? If the cel providers are BRIGHT, they'll drop the prices instead of getting greedy and get some market saturation going.
We'll see, I guess.
RE: Stand-Alone wireless data will never work...
RE: Stand-Alone wireless data will never work...
Btw, to the guy who was mentioning 3G. It should be noted that 3G needs even more towers then are already in the field to operate.
---------------------------------------
When you have a Clie showed up your mouth, you can only talk in vowels.
RE: Called that!
New Product
RE: New Product
---------------------------------------
When you have a Clie showed up your mouth, you can only talk in vowels.
RE: New Product
Does this make sense to anyone? I'm assuming 'showed' was a typo and should be 'shoved', but assuming that, I'm still not sure what this is trying to say.
You woulden't HAVE this problem...
Everybody else (Handera (Definately!), Handspring, and finally Palm ) realized that they coulden't sell peripherals unless they kept the same connector design for longer than a model or two.
Sony thinks it's still making MiniDisk players, where they can change the case completely around every revision. It's an OK way to think when you're selling something that just needs a headphone plug to work, but it dosen't cut it with more complex hardware.
Maybe someday Sony will settle down on a hardware platform - But when they do, you'll have to buy another one! God knows they won't offer adapters. Hell, they diden't even want to offer OS upgrades.
SUCKER.
RE: New Product
Do you notice that N6xx, N7xx, S3xx series all got the same @SS (connector design), that's why they all can use the same Clie Modem. Only The T-series has different ass, because of the design factor. Maybe next time you should go to a Compusa and check out the real thing b4 typing.
"Hell, they didn't even want to offer OS upgrades."
O yeah you can upgrade your OS on Visors .... hmm ... errr ..... maybe not, O yeah you need to buy a new Visor device to get OS Upgrade, because of the low cost ROM they use ... forgot ... sorry You can't even upgrade it even you pay $100.
if they do this i will change my isp
if they do this then i am changing to earthlink for my landline...and then get a modem for my palmie
~twizza
really sad...
PDANature - http://pdan.has.it - Hourly refreshed PDA news, reviews, discussions, features, commentarys, etc. http://pdan.has.it
P0rn on it???
Palm.net to close doors on Palm VII's according to SVPUG
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RE: Palm.net to close doors on Palm VII's according to SVPUG
RE: Palm.net to close doors on Palm VII's according to SVPUG
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Omnisky -- why a flop?!