And just as consumers were digesting the NorthPoint blowup, word spread that financially ailing Rhythms NetConnections, another big DSL provider operating in Salt Lake City, is considering putting itself up for sale after receiving a delisting notice from the Nasdaq stock market. Rhythms quickly affirmed its commitment to Salt Lake City. A spokeswoman in Englewood, Colo., said Utah's capital is one of 40 metro areas that it will continue to serve. Rhythms used to operate in 60 markets. Last year, the number of worldwide subscribers jumped more than 400 percent, and by 2004 the total number of lines in service in the United States is expected to reach nearly 26 million, according to International Data Corp., a Framingham, Mass., research company.
Demand is very, very high.
Arosnet was hit hard when Jato shut down without warning. With no backup service, Arosnet could only offer slower 56-kilobit access to its DSL clients until other arrangements were made. Despite strong demand from business and consumers, the landscape is littered with dead and dying DSL companies. Maribel Dolinov, an analyst with Forrester Research Inc. in Cambridge, Mass., predicts what has become a full-fledged shakeout will continue for a year before subsiding. That must cover the high cost of buying equipment, marketing and customer support.