Mediacom reaches financial agreement with Excite@Home by David Lias Mediacom's efforts to provide high speed cable Internet to Vermillion consumers shouldn't be hampered � even though the provider of those services has declared bankruptcy.
Excite@Home, a high speed Internet network, cut service to 850,000 AT&T Broadband customers early Saturday.
Mediacom struck a deal with the troubled company Dec. 4, however, that will allow high speed services to continue as it searches for alternative sources for cable Internet services.
Excite@Home's troubles will have no effect on Mediacom's cable television service in Vermillion, which includes basic cable and digital cable packages.
Mediacom announced Tuesday it had reached a definitive agreement with Excite@Home that will allow the company to provide continuous service to its high speed Internet customers through the end of February 2002.
Mediacom is a part of a group of broadband service providers that agreed Dec. 3 to deal with Excite@Home and its creditors to provide uninterrupted service.
Mediacom will pay $10 million to Excite@Home under the terms of this transaction, which includes three months of service for its high speed Internet customers.
The deal also includes Excite@Home's assistance with Mediacom's transition plan.
The agreement requires approval by Bankruptcy Court Judge Thomas E. Carlson.
"Our primary objective in these negotiations was to prevent a service interruption to our high speed Internet customers," said Rocco Commisso, Mediacom's chairman and CEO. "Assuming the bankruptcy judge approves the agreement, we will have three months to complete the transition from Excite@Home.
"We have performed extensive planning for our high speed Internet business, and have already started to implement our network plans," he said. "We are committed to executing the smoothest possible transition for our customers."
Mediacom Communications is the eighth largest cable television operator in the United States, with cable systems serving approximately 1.6 million basic subscribers in 23 states.
The company offers a wide array of broadband products and services, including traditional video services, digital television and high speed Internet access.