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RealTime IT News

FCC Orders Rhythms to Remain Open...For a While

Bankrupt high-speed ISP Rhythms NetConnections Inc., which had requested Federal Communications Commission (FCC) permission to close the doors of its Rhythms Links telecommunications service today, was denied that permission by regulators Monday and told it cannot close the service until Sept. 24.

"While the commission is sensitive to Rhythms Links' financial difficulties, we cannot overemphasize the importance of our charge to protect the public interest by ensuring the consumers have adequate notice and a reasonable opportunity to obtain new service," the FCC said in its order.

More than 35 commenters reportedly told the FCC that they would not be able to arrange for a new service provider by Sept. 10.

Rhythms filed for Chapter 11 Bankruptcy protection on Aug. 2, despite speculation in June of an asset buyout or acquisition of the company. It has laid-off 700 employees, about 75 percent of its staff.