Rhythms says so itself in that annual report, over and over and over. It depends on third parties for equipment, installation and provision of field service, as well as for fiber-optic transport facilities. It also depends on the company's Internet service provider customers to pay their bills, which apparently they haven't been doing in a timely manner. In November, Covad, for example, announced it would lay off 400 employees after 14 ISP partners failed to pay their bills on time. Covad Chief Executive Officer Robert Knowling resigned after the company lost more money than expected during that quarter.
Several analysts say right back to phone companies.
Most of the ILECs have some kind of DSL operation and could become service providers instead of just carrying another company's service. After getting burned by these upstarts, the big businesses that DSL providers largely serve are likely to feel more comfortable trusting their Internet service to a well-known name. The question is whether anyone besides the large phone companies will be offering it. Over 20,000 IT solutions listed. Free Personalized IT Advice.