Metricom to close Ricochet

03 Aug 2001 16:15

Metricom will shut down its pioneering Ricochet wireless Internet service next week because it has failed to find a buyer for the company

The company also announced an auction of company assets on 16 August and the immediate sacking of 282 employees.

The company has begun notifying customers and resellers of the high-speed service that the 17-city network will shut down on 8 August. Although it has just 51,000 subscribers in 14 states, Metricom is considered a Silicon Valley pioneer for creating a network that allows people to surf the Web from a park, train or car. Metricom investors, including WorldCom and Microsoft co-founder Paul Allen, poured as much as $500 million into the company.

The technology was impressive -- though occasionally frustrating due to installation difficulties and slow connections. But the high cost of building the network made it difficult to earn a profit. The company filed for Chapter 11 bankruptcy protection last month. Also on Thursday, Metricom said it received a letter from the Nasdaq stock market notifying the company that its shares will be delisted on Friday.

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Story URL: http://news.zdnet.co.uk/hardware/0,1000000091,2092565,00.htm