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    Omnisky Files for Chapter 11

    By
    Carmen Nobel
    -
    December 7, 2001
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      Wireless Internet service providers have seen better days.

      One of the pioneers, Omnisky Corp., announced Friday that it is filing for Chapter 11 bankruptcy, a plan that includes selling its assets and its subscriber base of 32,000 to Earthlink Inc.

      The Bankruptcy Court of the Northern District of California must approve the deal first. If that happens, Earthlink can offer services comparable to those of Omnisky using Omniskys assets.

      Arch Wireless Inc., which provides mobile messaging services, filed for Chapter 11 bankruptcy on Thursday. The company needs to file a plan of reorganization to its creditors by Jan. 15.

      Meanwhile, wireless ISP Yadayada.com has shut down. The company will enable desktop access to e-mail until Dec. 13, but all the wireless access services and the companys information portal were shut down Thursday night.

      Such consolidation in the market is par for the course as cell phone service providers and hardware manufacturers have been launching their own Internet services.

      Carmen Nobel

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