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Ricochet changing hands

Wireless network to expand services

Published August 7, 2007 at midnight

The Denver wireless network Ricochet, which has enjoyed an almost cultlike following over the years, has changed hands again.

Civitas Wireless Solutions, founded by Ricochet President -Judi Evans, has bought the network from California-based Terabeam Inc. for $200,000. A Terabeam subsidiary also will get a 15 percent equity stake in Civitas, according to a regulatory filing Monday.

The Ricochet wireless network has about 6,000 users and extends throughout much of the Denver area. Evans said she will expand services, including an agreement announced in April to provide the city and county with municipal Wi-Fi services.

"We will continue to maintain the Ricochet brand, and there will be no interruption of service in the Denver marketplace," Evans said. She said the company is eyeing a late third-quarter launch for Wi-Fi services in Capitol Hill.

She said Civitas also will pursue Wi-Fi and WiMax services in other markets, including previously announced Rockville, Md. WiMax often is referred to as Wi-Fi on steroids, offering potentially higher speeds and larger coverage areas.

Ricochet's current infrastructure in Denver offers Internet speeds of 128 kilobits to 200 kilobits a second, or two to four times as fast as a dial-up modem. The networks attracted plenty of techies in the late 1990s.

But since then, wireless carriers such as Verizon Wireless and Sprint have come out with faster wireless Internet services.

Ricochet responded by dropping prices, and is running a special of $19.95 a month.

Ricochet has struggled financially, including a 2001 bankruptcy. Its assets were sold to Denver- based Aerie Networks, which resumed services in 2002 and expanded to San Diego.

Terabeam, a broadband wireless equipment provider, has owned Ricochet since 2004. Evans joined Ricochet in 2005.

"It was really an issue of concentration and focus for us," said David Renauld, Terabeam vice president, of the decision to sell the network. "We think Ricochet has some exciting potential, but on a quarterly basis it was just 3 to 5 percent of our revenue."

In addition to selling the Denver network, the San Diego network will shut down, Renauld said.

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