Closure of Seattle-based Wi-Fi firm raises eyebrows

[dArKeR]

BUSINESS NICHE: Cometa Networks, which specialized in providing wireless Interent hotspots to hotels, cafes and bookstores, could not get the financing it needed

AP , SAN FRANCISCO
Friday, May 21, 2004,Page 12

A company that equips coffee shops and bookstores for wireless Internet offerings is shutting down, casting doubt on a business niche many analysts had considered a sure bet.

Despite initial investments from AT&T Corp, Intel Corp, IBM Corp and venture capital firms, Cometa Networks Inc could not get additional financing to expand beyond the Seattle area, said Kent Hellebust, Cometa vice president of marketing.

The Schaumburg, Illinois-based company will help customers such as Tully's Coffee Corp and Barnes & Noble Inc find new providers in the Seattle area before shutting its doors in the coming weeks, Hellebust said on Wednesday.

Cometa attracted marquee investors and media attention in late 2002, when it began selling "Wi-Fi" access to cafes, bookstores and Internet service providers.

http://www.taipeitimes.com/News/worldbiz/archives/2004/05/21/2003156392

I know I know CNN Whores, Fox Whores, CNBC Whores... 'The recovery will be here next quarter, March 2001.'

[flamingyouth]

1. Weird - the headline says they're Seattle-based

Yet the article says they're based in Schaumburg (Chicago suburb), Illinois. Either way, so much of this type of thing gets over-hyped, and I'm not surprised it's failed, frankly.