From Skyreport.

WSNet to Cease Operations - - -

WSNet, the Austin, Texas,-based company that
delivers satellite-based video services to
MDUs and small and rural cable operators as
well as operating a C-Band business, will
cease operations on Feb. 28, after 20 years
in the business.

In a letter sent to its customers, WSNet COO
Stuart Lefkowitz said an inability to secure
new funding forced the company to terminate
its business at the end of the month. WSNet
transmissions from Loral's Telstar 6 satellite
will be discontinued on that day, and the
company is actively shopping its C-Band business
and other assets.

WSNet's Randy Yonkers said there's a lot of
interest in the C-Band business. What happens
with the company's big dish product will be
determined at a bankruptcy hearing scheduled
for Feb. 27.

Late last year, WSNet filed for Chapter 11
bankruptcy reorganization. According to October
2002 reports on the company's reorganization
filing, WSNet said it had assets of $10 million
to $50 million and debts of $50 million to $100
million.

Lefkowitz said in his letter that a customer
stepped up and provided funding for the company
to operate through the end of the month, but
didn't exercise an option to provide more money
for March.

"We realize that the industry that we have proudly
served for 20 years has become very reliant on
our services and that for many of you this
announcement will incur a great deal of hardship
for your business," Lefkowitz said in his letter.
"In spite of our best efforts to make WSNet a viable
entity, we have not been able to reach that critical
mass of customers that makes our digital platform
successful."