Excite@Home in surprise customer freeze

Excite@Home in surprise customer freeze

Struggling broadband service provider Excite@Home has stopped accepting new customers for its cable-modem service, effectively preventing telecom giants AT&T from expanding its cable TV client base.

AT&T and its cable partners, which rely on Excite@Home for their broadband service, were given the news yesterday, without the expected 30 day notice period.

A spokeswoman for Excite@Home said the step was taken to conserve cash.

She said: ‘Adding new subscribers entails incremental capital-cost outlays, which directly affects the company’s cash flow during the U.S. bankruptcy process.’

Excite@Home filed for Chapter 11 bankruptcy protection at the start of October following a month of reported financial problems and the sacking of its auditor Ernst & Young, replaced by PricewaterhouseCoopers. Excite@Home’s debts are reported to be around $1bn (Pounds 689bn).

AT&T is currently awaiting bankruptcy court approval for its $307m (Pounds 211m)purchase of Excite@Home broadband internet access business related services. The telecom already owns a 23% stake in the ISP.

But the decision to freeze new customer sign-ups has thrown AT&T into temporary disarray, and it is not expected to be able to add new cable customers or upgrade existing ones until 3 November.

According to one source close to the company, the decision was tactical in nature and aimed at forcing AT&T to up the bidding price for Excite@Home’s broadband network.

Links

Excite@Home files for bankruptcy cover

Bankruptcy threat grows at Excite@Home

Excite@Home CFO resigns

Excite@home drops auditor E&Y

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource