StarNet Aims High with IPO
Does an IPO from an ISP stand a chance? We'll find out in spring 2002, when StarNet goes public in what could wind up as an investor referendum on the future of fixed broadband wireless.Does an IPO from an ISP stand a chance? Well find out in spring 2002, when StarNet goes public in what could wind up as an investor referendum on the future of fixed broadband wireless. The seven-year-old company provides broadband wireless and wholesale dial-up services in its home base of suburban Chicago, and by the end of this month, it will have launched broadband wireless in Las Vegas. StarNet CEO Russ Intravartolo says Miami, Dallas, Phoenix and Sacramento also could be up and running by the time of the IPO.
Unlike rivals AT&T Wireless and Sprint, which recently shut down or mothballed fixed broadband wireless, StarNet uses technology that doesnt require a license and has far lower infrastructure costs. That means a faster return on investment: Intravartolo says that StarNet starts turning a profit on a customer inside of four months, while rival broadband wireless services usually take at least a year.