NorthPoint calling it quits

EMERYVILLE, CALIF. - DSL provider NorthPoint Communications last week revealed it has been unable to find long-term financing and will shut down its national DSL network.

AT&T purchased NorthPoint's assets last week for about $135 million. The deal included NorthPoint's collocation sites, some network equipment, systems and support software, and other assets. AT&T will not keep the NorthPoint network operating.

NorthPoint filed for Chapter 11 bankruptcy protection in January. At that time, company officials hoped the bankruptcy process would buy NorthPoint time to find either financing or a partner to keep the company operating.

NorthPoint has ceased taking new DSL orders and installing lines. The provider says it will work with its ISP reseller partners to transition NorthPoint customers to other DSL networks.

In a letter to customers on its now sparse Web site, NorthPoint CEO Elizabeth Fetter writes: "We urge you to take immediate action to secure alternate services for your needs."

Like other competitive carriers, NorthPoint has been hurt by the lack of available funding in the market.

Last year a negotiated merger between NorthPoint and Verizon fell through after Verizon pulled out of the deal, leaving NorthPoint in a financially precarious situation.

NorthPoint's demise further reduces the options businesses have when looking for a business-class symmetrical DSL (SDSL) line. Covad Communications and Rhythms offer SDSL nationally, while other providers offer the service on a regional basis.