Starry, an ISP that started in 2016 with a focus on providing home internet with wireless antennas instead of cables, has declared bankruptcy. In a press release, the company says it plans to restructure quickly and will continue to provide internet services in its “five core markets”. Those are Boston, New York City, Los Angeles, Denver, and Washington, DC.
The ISP has clearly had a rough time in recent months. In October 2022, it announced it would lay off about 500 people, representing about half of its staff. A few months later, Starry announced it was leaving Columbus, Ohio, in an effort to focus more on its five “core markets”. All the while, it burned millions of dollars in cash and its stock plummeted after a corporate-backed special purpose IPO in March. about $0.02 per share.
The company also defaulted on the Rural Digital Opportunity Fund’s bids after it won awards from the FCC for working to bring the Internet to underserved areas in the US. Had it completed the work, it would receive nearly $269 million, according to Read light.
Starry has asked the United States Bankruptcy Court for the District of Delaware to approve a plan that would provide it with $43 million in funding from lenders, which he said would provide “the necessary liquidity to continue and meet its normal business operations.” to its obligations after submission to its employees, customers and suppliers.”
“With the support of our backers, we are confident in our ability to successfully complete this process as a stronger company, well positioned to continue to bring Internet to customers,” said Chet Kanojia, CEO of Starry, in the statement. company press release.
Unlike ISPs that use phone or cable lines for data transfer, Starry uses large antennas to send the Internet to smaller antennas around a city, which then connect to more traditional wireless routers. Mobile carriers such as Verizon and T-Mobile have made a similar offer internet service at home in recent years using 5G and have attracted hundreds of thousands or even millions from users to their fixed wireless subscriptions.
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