The end of one-time mobile broadband provider Open Range Communications is at hand as the company’s assets are set to be auctioned off beginning Jan. 11. Colorado-based Open Range, which provided wireless Internet and phone services using WiMAX technology across portions of 17 states, filed for Chapter 11 bankruptcy on Oct. 6.
According to auction services firm Heritage Global Partners, the auction will feature “large quantities of state-of-the-art networking, test equipment, IT equipment and office furnishings as well as more than 350 cell towers located throughout the United States.”
“This auction is an opportunity for local or regional wireless telecom providers to purchase technologies and equipment to expand their services and better serve their customers,” said David Weiss, vice president of Heritage Global Partners.
In 2008, Open Range garnered approval for $267 million in loans from the U.S. Agriculture Department’s Rural Development Utilities Program to deliver high-speed wireless broadband services using WiMAX technology to more than 6 million people in 546 rural communities across 17 states within five years. Those states include Arkansas, Alabama, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Ohio, Pennsylvania, Nebraska, Nevada, New Jersey, New York, South Carolina and Wisconsin.
That initial loan was augmented in early 2009 by an additional $100 million in financing from JPMorgan & Chase Co.’s One Equity Partners.
Open Range’s initial plans were to lease mobile satellite spectrum from Globalstar Inc. to deploy its services.
Open Range earlier this year had signed a multiyear network partnership agreement with LightSquared that called for Open Range to lease capacity on LightSquared’s satellite operations to provide wireless broadband services as well as a nationwide reciprocal roaming agreement.
Open Range was launching markets as late as the end of June. The company’s website now tells customers:
“Open Range discontinued service on Nov. 18, 2011. The Company has made attempts to notify customers by e-mail, by telephone message and by posting a message on its website, that you must return the Open Range modem as required in the Open Range Terms of Service. The modem must be returned by Dec. 18, 2011; otherwise no refund of prepaid services will be issued and a modem fee will be charged.”
Bored? Why not follow me on Twitter?
