Wireless ISP Starry Is Filing For Bankruptcy (theverge.com) 8
Starry, an ISP that launched in 2016 with a focus on delivering home internet with wireless antennas instead of cables, has declared bankruptcy. The Verge reports: In a press release (PDF), the company says that it intends to quickly restructure and that it'll continue providing internet service in its "five core operating markets." Those are Boston, New York City, Los Angeles, Denver, and Washington, DC. The ISP has clearly been struggling over the past few months. In October 2022, it announced that it was laying off around 500 people, which amounted to about half of its staff. A few months later, Starry announced it was leaving Columbus, Ohio, in a bid to focus more on its five "core" markets. All the while, it was burning millions of dollars in cash, and its stock was dropping after a special purpose acquisition company-backed IPO in March -- it started at around $10 a share but is now worth $0.012, down from last week when it was approximately $0.02 per share.
The company also defaulted on its Rural Digital Opportunity Fund bids after it won awards from the FCC to work on providing internet to underserved areas in the US. Had it completed the work, it stood to receive almost $269 million, according to Light Reading. Starry has asked the United States Bankruptcy Court for the District of Delaware to approve a plan that would give it $43 million in funding from lenders, which it says would provide "the necessary liquidity to continue its normal business operations and meet its post-filing obligations to its employees, customers and vendors." "With the support of our lenders, we feel confident in our ability to successfully exit this process as a stronger company, well-positioned to continue" providing internet to customers, said Starry CEO Chet Kanojia in the company's press release.
The company also defaulted on its Rural Digital Opportunity Fund bids after it won awards from the FCC to work on providing internet to underserved areas in the US. Had it completed the work, it stood to receive almost $269 million, according to Light Reading. Starry has asked the United States Bankruptcy Court for the District of Delaware to approve a plan that would give it $43 million in funding from lenders, which it says would provide "the necessary liquidity to continue its normal business operations and meet its post-filing obligations to its employees, customers and vendors." "With the support of our lenders, we feel confident in our ability to successfully exit this process as a stronger company, well-positioned to continue" providing internet to customers, said Starry CEO Chet Kanojia in the company's press release.
Starlink competition is a bitch. (Score:1)
Hmm. I can use your crappy wireless 10Mbps service... or for the same $ I can get Starlink.
Re: (Score:2)
Given they listed 5 highly developed areas as their core markets, their core competition is probably 5G towers, not satellite.
Re: (Score:2)
Comcast just changed my home internet from 200 Mbps to 1 Gbps (without changing my cost) -Guess why? Competition.
Re: (Score:2)
Comcast just changed my home internet from 200 Mbps to 1 Gbps (without changing my cost) -Guess why? Competition.
But what "data cap" did Comcrap implement?
Re: (Score:2)
But what "data cap" did Comcrap implement?
No clue. I have never hit their cap. Last time I looked at the website (a couple years ago) it said 1T / month.
A shame, hopefully they actually do bounce back (Score:5, Informative)
Starry is the only real competitor to Comcast's ISP monopoly in my city and, so long as you live in a big building and qualify for their actually good rooftop equipment, their service is fine. They are a little bit pricey and their speeds were just ok, but I'd pay the same and get a little less to stick it to comcast.
Unfortunately, I never got the chance! I was never able to get them to service my building. I own a condo in a mid-size building, I'm on the condo board, and I have the authority to let them build up infrastructure on our roof. We have good line of sight to other Starry-served buildings. I contacted Starry several times to tell them, hey, please call me back, we want to give you money! Install your equipment here! I was basically ignored, save for an automated reply saying that "service was not yet available in my building". I guess a human being didn't read the message. Given that experience, I'm not exactly astonished to see them in bankruptcy.
Hopefully they bounce back with better management, more focus ,and a better sales/install team. Comcast needs a rival and their technology seems solid.
Pepsi must be pleased (Score:2)
That makes their brand management easier.