Dismantling Of NorthPoint Is Nearly Complete - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Dismantling Of NorthPoint Is Nearly Complete

How the potentially mighty have fallen. The once-promising future of digital subscriber line wholesaler NorthPoint Communications Inc. is just about history. Just seven months removed from being on top of the DSL world, NorthPoint, which is under Chapter 11 bankruptcy protection, watched helplessly as AT&T on Thursday snatched up basically all of its physical assets for a bargain-basement price of $135 million.

AT&T will get NorthPoint's co-locations facilities nationwide, as well as most of its network equipment, systems and support software, and other assets, including two leased buildings in Emeryville, Calif. An AT&T spokesman says the company plans to focus on retail DSL service and thus has no interest in taking on NorthPoint's base of service-provider customers. The acquisition, which is subject to regulatory approval and is expected to close within 60 days, signals a sad ending for a company that not long ago was poised to become a major telecommunications player.

In August, when Verizon Communications Inc. agreed to pay NorthPoint $800 million to take over the former's DSL business, NorthPoint appeared to be positioned to become a DSL giant. As service-related troubles clouded the DSL industry, however, the glow surrounding NorthPoint and rival Covad Communications Co. faded, and Verizon pulled out of the deal.

But NorthPoint's misfortune has turned into a stroke of luck for AT&T, which gets the beginnings of a DSL service infrastructure for one-sixth of what Verizon once was prepared to pay NorthPoint merely to service its DSL customer base. Independent telecom analyst Jeffrey Kagan says the acquisition could mark the beginning of a turnaround for AT&T's struggling consumer business. Kagan says the biggest question was how AT&T was going to provide DSL service. Getting NorthPoint's assets may have answered that question.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
The State of Chatbots: Pandemic Edition
Jessica Davis, Senior Editor, Enterprise Apps,  9/10/2020
Deloitte on Cloud, the Edge, and Enterprise Expectations
Joao-Pierre S. Ruth, Senior Writer,  9/14/2020
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Register for InformationWeek Newsletters
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll