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Amid the rubble, Ricochet bounced back.

In the aftermath of Sept. 11, few companies can claim thefortunate circumstances with which Ricochet owner Aerie Networks has met. In themonths after the tragedy, not only did Aerie survive, it finally uncovereda credible post-bubble business opportunity.

"I think Sept. 11 increased awareness, a need for other types ofpublic safety

technologies," said

Aerie Network

CEO Mort Aaronson, whose company was renamed Ricochet Networks this year. "It made the market receptive to it, without question."

Ricochet's rise from the ashes of insolvency of its former owner



, provides a poignant leitmotif to the country's healing. Just as hundreds of companies recouped, rebuilt and returned to lower Manhattan, Ricochet, a high-speed wireless data service, found new purpose.

It's also an important footnote to the country's urgency overfortifying its communications network. Defense contractor


(RTN) - Get Free Report

, for instance, is creating a mobile command center for emergencyworkers to address some of the communications incompatibility among thedifferent services units. Separately,


(IBM) - Get Free Report

and government agencies are buildingan emergency wireless network to link 40 Washington, D.C.-area police, fireand safety services agencies called the Capital Wireless IntegratedNetwork, or CapWIN.

Closed Before the Attacks

Just last August, Ricochet's former owners Metricom were forced to filefor bankruptcy, buckling under the weight of a crushing debt load relatedto its expensive nationwide buildout and the overall depressed market fortelecom products. At its high point, Metricom, which spent more than $1 billion building out a nationwide network of radios tacked onto trafficlight pole tops and buildings, never attracted more than 51,200 subscribersin 21 cities. These fiercely loyal customers paid$70 to $80 a month for the privilege of surfing, sending andreceiving wireless data in its limited coverage areas. The serviceofficially shut down on Aug. 8, 2001.

Our Sept. 11 Home Page

Editor's Note: Revisits Sept. 11

The Making of a Hawk
by James J. Cramer

What We Saw the Day Time Stood Still

Investors Will Lose at
Patriot Games

Amid the Smoke, Repacking Wall Street's Data Pipe

Document Chaos Isn't
Sorted Out

Battle Against Terrorism Boosts Defense Sector

Faint Glow Alights on a
Once-Ashen Wall Street

Disaster Recovery Needs Didn't Stop Storage's Slide

Security Software Gets Mind Share, but Not Sales

Lodging Woes Linger in Troubled Times

Market's Terror Trend Plays Out Predictably

Bankrupt Ricochet Rises Like a Phoenix After Sept. 11

Airline Woes Preceded
Sept. 11 and Will Remain

Wall Street Shocked
Into Exodus

At the same time, Aaronson's Aerie Networks was in the process of windingdown its own money-draining operations of laying fiber across thecountry. The company was casting about for a lifesaver after a $500 million commitment from



to provide equipment financing fell through in April 2001, and, according to the

Wall Street Journal

Aerie had less than $10 million of its original $147 million venture capital investment left. "We were in the middle of pulling the plug from

the original business," said Aaronson in an interview.

In the weeks after the attack, with wireless switches and transmittersin virtual disarray in the lower downtown area, New York City officialscontacted Metricom to relight the networks temporarily. To their surprise,most of Metricom's Ricochet equipment had escaped unscathed. As a result,nearly 1,000 emergency service workers were able to send buildingschematics and disaster area photos from the site back to Federal EmergencyManagement Agency headquarters.

By the end of the year, Aerie Networks picked up the remaining assetsfrom Metricom for $8.25 million. Metricom's recent partnership with NewYork City bolstered Aerie Networks' new strategy to relaunch the serviceand be profitable, a tall order given Metricom's recent demise.

Apparently, according to Aaronson, a relatively large chunk ofMetricom's expenses was earmarked for paying city governments acrossthe nation for rights to build equipment on city-owned properties."There was too much in fixed operating costs," Aaronson explained. "Wethought of a more efficient way to sell."

In the new plan, Aerie Networks would strike barter deals with citymunicipalities for the right to operate its radios built on city propertyin exchange for free and subsidized Ricochet services for city agencyemployees.

Early evidence suggests it's working. Since August, Ricochet hasrelaunched in its hometown, Denver, with a 20-year contract tooperate its radios built on city property in exchange for about 1,000 freeRicochet service contracts. The service, which now costs regular consumers$44.95 a month, offers residents who live in areas where neither cable nor DSLservice is available a rapid alternative roughly equivalent to more than double dialup speeds.

Other markets including San Diego are slated to be served by the end ofthis year. Earlier this August, Agostino Cangemi, New York City's deputy commissioner of technology and telecommunications, said New York City is in negotiations to reintroduce Ricochet service.

Ricochet's happy ending has an ironic edge for investors: Because bankrupt, publicly traded Metricom was acquired by closely held Aerie in November 2001, it's rise from the ashes didn't translate into stock-market riches.