Starry Group Holdings, Inc., a licensed fixed wireless technology developer and internet service provider, has announced operational results for the third quarter of 2022, which show that Starry successfully delivered strong growth in customer relationships to 91,297, while also increasing the number of homes serviceable to 5.96 million and driving penetration of homes
serviceable.
Starry also announced that its digital equity program, Starry Connect, now reaches more than 87,000 units of public and affordable housing, an 83% increase year-overyear.
The Company also announced that it is implementing cost-cutting measures to conserve capital and improve its capital runway as it explores all strategic options.
These measures include:
• An approximately 50% reduction in its workforce;
• A freeze on hiring and non-essential expenditures;
• A focus on penetrating its deployed network and deployed buildings where it has
already invested capital; and
• Withdrawing from participation in the Federal Communications Commission’s (FCC)
Rural Digital Opportunity Fund (RDOF) program.
Further, the Company announced that, in light of the above measures, it is withdrawing full
year 2022 guidance.
“Starry continues to execute well and our third quarter operating results show it, with our focus on increasing penetration and customer relationships in our dense urban markets with multi-tenant buildings,” said Chet Kanojia, Starry’s Chief Executive Officer. “Even so, the
aggressive measures we announced today were needed to curtail our cash burn while we pursue strategic options.”
“This is an extremely difficult economic climate and capital environment, and at present we don’t have the capital to fund our rapid growth. Because of that, we’re focusing our energies on our core business: serving multi-tenant buildings in our existing dense urban markets. Last week, we made the tough decision to withdraw from the FCC’s RDOF program. While
participation in this important program fit within our strategic vision in 2020, changing capital needs, changing capital environments, and continued success in the urban multitenant market forced a decision to take a step back and focus our energies and capital on
executing on our core business plan. And this week we made the very difficult decision to let go approximately half of our workforce – many of our colleagues who helped build Starry.”
“Today is a very tough day for our Starry team, but I want to be clear: Starry remains open for business. We, like so many others, are making the difficult calls now and taking steps that will allow us to be laser-focused on financing the business over the long-term and continue serving our markets.”
