Rhythms NetConnections
Encyclopedia
Rhythms NetConnections Inc. (Former NASDAQ
: RTHM) was in the business of providing broadband
local-access communication
services to large enterprises, telecommunications carriers and their internet service provider
(ISP) affiliates and other ISPs. The company's services included a range of high-speed, always-on connections that were designed to offer customers both cost and performance advantages when accessing the Internet or private networks. The Company used multiple digital subscriber line (DSL) technologies to provide data transfer rates ranging from 128 kbit/s to 8.0 Mbit/s delivering data to the end user, and from 128 kbit/s to 1.5 Mbit/s receiving data from the end user. The company was delisted from NASDAQ
in May of 2001. On August 2, 2001, the Company and all of its wholly owned United States subsidiaries voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code. Also in August 2001, the Company sent 31-day service termination letters to all of its customers.
and violating the Securities Act of 1933
by making misleading statements in order to gain regulatory approval.
At one time, Enron
owned nearly 50% of the publicly available Rhythms stock.
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
: RTHM) was in the business of providing broadband
Broadband
The term broadband refers to a telecommunications signal or device of greater bandwidth, in some sense, than another standard or usual signal or device . Different criteria for "broad" have been applied in different contexts and at different times...
local-access communication
Communication
Communication is the activity of conveying meaningful information. Communication requires a sender, a message, and an intended recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast...
services to large enterprises, telecommunications carriers and their internet service provider
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
(ISP) affiliates and other ISPs. The company's services included a range of high-speed, always-on connections that were designed to offer customers both cost and performance advantages when accessing the Internet or private networks. The Company used multiple digital subscriber line (DSL) technologies to provide data transfer rates ranging from 128 kbit/s to 8.0 Mbit/s delivering data to the end user, and from 128 kbit/s to 1.5 Mbit/s receiving data from the end user. The company was delisted from NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
in May of 2001. On August 2, 2001, the Company and all of its wholly owned United States subsidiaries voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code. Also in August 2001, the Company sent 31-day service termination letters to all of its customers.
Legal Action
Rhythms and its former executives are in the process of facing a class action lawsuit for ladderingLaddering
Laddering is an investment technique that requires investors to purchase multiple financial products with different maturity dates.- Benefits :Laddering avoids the risk of reinvesting a big portion of assets in an unfavorable financial environment...
and violating the Securities Act of 1933
Securities Act of 1933
Congress enacted the Securities Act of 1933 , in the aftermath of the stock market crash of 1929 and during the ensuing Great Depression...
by making misleading statements in order to gain regulatory approval.
At one time, Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
owned nearly 50% of the publicly available Rhythms stock.
External links
- Former Official site - www.rhythms.net
- WorldCom buys Rhythms' gear to keep service running ITworld
- WORLDCOM PAYS $40 MILLION FOR RHYTHMS DSL ASSETS
- InternetNews.com article - Rhythms NetConnections to End Service
- The Register - Fattest Fat Cats Ever? - Article on Bonus Payouts to CEO and COO that occurred 3 days prior to bankruptcy