OmniSky

About OmniSky

OmniSky, a Silicon Valley startup from the dot-com era, was established on May 7, 1999. The company focused on providing wireless internet services for mobile touchscreen devices. Its business model was centered on monthly subscription fees from its user base, which grew to approximately 42,000 subscribers. The service offered nationwide coverage, primarily through an agreement to utilize AT&T Wireless's network, giving users internet access on their personal digital assistants (PDAs).

OmniSky's core product was a wireless connectivity service built on Cellular Digital Packet Data (CDPD) technology. This service was compatible with popular handhelds of the time, including the Palm V and Handspring Visor. The company developed modems for these devices, and notably, produced the first touchscreen handset to integrate Google's search engine. Subscribers paid a monthly fee of around $40 for data services on their handheld devices.

The company went public with an IPO on NASDAQ on September 21, 2000. Prior to its IPO, OmniSky had generated a total revenue of $2.1 million against a loss of over $40 million. By November 2001, the company faced significant financial distress, impacted by the deteriorating capital markets following September 11, and was unable to file its third-quarter financial report. This led to a dramatic fall in its stock value. In December 2001, OmniSky filed for Chapter 11 bankruptcy protection and sold its assets, including its subscriber list of 32,000 users and its client software, to the internet service provider EarthLink.