MobileStar lays off staff, future uncertain: Reports started coming in this morning from colleagues and anonymous sources that MobileStar had laid its entire staff off and the future of its network was in doubt. MobileStar is a major wireless ISP with a partnership with Starbucks that led to over 700 currently equipped outlets and plans to reach over 3,000 in the next two years.
By mid-afternoon, confirmation of the layoffs was received, and publications started to file stories. CNet News.com has most of the details, while a Wall St. Journal article just appeared a few minutes ago, but the Journal requires paid registration. (The story just went out on the Dow Jones wire; the abbreviated story is here if you're a Journal subscriber.)
In the WSJ story, Starbucks made a few statements on the state of the network:
Starbucks Corp. (SBUX) said the provider of its touted wireless Internet access has warned of possible service "interruptions." The Seattle-based coffee store chain "hopes that the interruptions will be brief and is working on alternatives to continue providing wireless service to its customers," a spokeswoman said. Despite possible interruptions, Starbucks "remains committed" to providing Internet access at its retail stores.
I'm a harbinger of doom, apparently, having interviewed MobileStar's CEO just a few days ago, just as I interviewed the VP of marketing at AerZone last December four days before its parent company Softnet pulled its plug. AerZone had an ambitious plan of expansion, with deals inked for installations in San Francisco (throughout), and at United and Delta gates and lounges. Softnet had bought Laptop Lanes with the intention of rebranding and expanding it; instead, they recently sold nine of their Laptop Lanes locations to MobileStar competitor Wayport.
MobileStar's CEO told me that they were putting their new installations on hold until closing the next round of funding. It's possible MobileStar will leap from the ashes, but their liabilities are high, capital and leasing costs still largely in the future, and revenue potential remains a trickle. They've got my $12.95 per month for a limited account, and that's probably not enough to tide them over.