Struggling wireless Internet services provider Ricochet Networks Inc. has been rescued by EDL Holdings Inc., a Victor Mitchell Family L.P. company. Victor Mitchell is chief executive officer and founder of wireless distributor Advantage Wireless, which is based in Centennial, Colo.
Mitchell, who will serve as Ricochet’s CEO, plans to cut prices for Ricochet service and expand the company’s existing Denver and San Diego networks during the next few months, which he believes will result in “an immediate spike in sales.” Ricochet is now seeking to hire 30 employees in Denver, including the re-hire of some who were laid off under the company’s previous ownership, Aerie Networks Inc. Ricochet’s former CEO Greg Sadler will remain with the company.
Aerie purchased Ricochet from Metricom Inc. in 2002 after that company went bankrupt. Metricom had deployed Ricochet in 17 cities across the United States. Despite Aerie’s original business plan, which called for re-activating all 17 networks, the company deployed Ricochet only in Denver and San Diego. Aerie said last month it was evaluating options relative to its business prospects following rumors it had fired most of its Ricochet staff and its networks were experiencing intermittent blackouts.
