MobileStar's demise was the result of at least two important factors: the collapse in the private equity markets in mid-2001 and the events of September 11th. While MobileStar's investors provided a bridge loan during the mid-2001 time frame, the terrorist attacks in New York and Washington brought a steep decline in business travel, MobileStar's core market. MobileStar's investors could not continue to finance the business and new investors were skittish about investing in a company focused on serving a market that had recently and rapidly collapsed.
It ceased operation in October 2001, but its bankrupt assets and contracts were bought by Voicestream Wireless and by February 2002, was operating as T-Mobile Broadband. T-Mobile Broadband was the first part of VoiceStream to rebrand to the T-Mobile name. It was official launched as T-Mobile HotSpot in August 2002.
Starbucks wireless network a sweet deal for MobileStar.(providing wireless LAN connectivity)(Company Business and Marketing)
Jun 25, 2001; Starbucks Coffee this summer will launch one of the largest wireless network initiatives ever, rolling out high-speed Internet...