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Earthlink reaches for Omnisky

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Earthlink, the US ISP, is to bid for key assets of wireless data provider Omnisky Corporation, currently in Chapter 11.

Earthlink wants Omnisky's 32,000-strong customer database and "key wireless infrastructure components" required to keep the service running without interruption.

The unspecified offer has the backing of Omnisky management, but it must obtain the approval of the Bankruptcy Court. The risk for Earthlink and Omnisky is that today's announcement could smoke out another bidder.

If successful, the transaction would save EarthLink "time and investment in bringing to market a suite of mobile wireless services comparable to OmniSky's current offerings" ®

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