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News > Technology
NorthPoint shutters DSL
March 29, 2001: 7:37 a.m. ET

Bankrupt service provider forced to unplug high-speed Internet service
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NEW YORK (CNNfn) - NorthPoint Communications Inc., unable to raise much needed cash, has shut down its high-speed Internet service, leaving about 100,000 business customers without Internet access.

The move comes barely a week after AT&T Corp. agreed to pay $135 million for the assets of NorthPoint, which filed for bankruptcy protection from creditors early this year.

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

graphicPrivately held NorthPoint urged customers left stranded without enough time to find alternate Internet service to contact their service providers directly for additional details about future service.

San Francisco-based NorthPoint filed for Chapter 11 bankruptcy protection in January after Verizon Communications (VZ: Research, Estimates) decided in November 2000 not to take a 55 percent stake in the troubled company.

The company sells high-speed DSL Internet connections to about 100,000 businesses and Internet Service Providers (ISPs), which in turn sell them to businesses and consumers.

Basking Ridge, N.J.-based AT&T (T: Research, Estimates) has agreed to buy NorthPoint's physical assets, but not the customer contracts. In addition to DSL service, NorthPoint operates local and long-distance telephone networks and broadband networks.

AT&T shares slipped 87 cents to $22.07 in trading Wednesday.

-- from staff and wire reports graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.