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Palm.net services disrupted

Customers trying to subscribe to Palm's wireless service, Palm.net, have been unable to activate their accounts.

Customers trying to subscribe to Palm's wireless service, Palm.net, have been unable to activate their accounts.

The handheld giant confirmed the problem but would offer no details on when it began, what caused it or when it will be fixed.

"We are aware of the problem and are working with suppliers to resolve the issue," spokeswoman Julia Rodriguez said.

Rodriguez would not confirm the numbers of customers affected but said it was a "small group." Palm has been tight-lipped concerning the number of subscribers to its wireless service.

The disruption in service follows a price cut earlier this month on Palm's wireless VIIx. The model has a built-in antenna that allows owners to connect to the Palm.net service. On May 11, Palm cut the VIIx's price from $299 to $199. With a mail-in rebate for subscribing to the Palm.net service for one year, VIIx owners can get an additional $100 off. The service offers information such as news, stock quotes and sports scores. The service costs $24.99 per month for limited access or $44.99 per month for unlimited access.

The Palm.net snafu is the latest addition to a growing list of bad news for the company.

Last week, the company cut in half its revenue outlook for the current quarter and announced the dissolution of a deal to acquire with Extended Systems.