Rhythms NetConnections faces liquidation.(Brief Article)

Byline: Leon Lazaroff

Rhythms NetConnections, an Englewood, Colo.-based provider of high-speed Internet access, filed for Chapter 11 bankruptcy protection Aug. 2, setting up a likely liquidation of the company's assets.

The long-expected announcement lends weight to a growing consensus within the telecommunications sector that companies cannot become profitable if they focus on a single service. In this case, Rhythms attempted to sell digital subscriber lines, or DSL, to Internet service providers who would then sell high-speed Internet access to end users.

Besides Rhythms, the two best-known companies to attempt the DSL-only model were NorthPoint …