Another Start-Up Pulls Back
By Joe Estrella -- Multichannel News, 1/24/2001 6:09:00 PM
American Broadband Inc. on Wednesday became the latest telecommunications start-up to step back from its previously announced plans.
The Boston-based outfit -- headed by former Continental Cablevision Inc. executive Edward Holleran -- has withdrawn its application for a franchise in Buffalo, N.Y., and abandoned talks in other jurisdictions.
It decided to pull in its horns after failing to raise $450 million in necessary funding during a second round of financing.
'We didn't think it was fair to leave [local franchising authorities] on the hook forever,' ABI spokeswoman Donna Garofano said.
Adding to its financial woes, the company's initial investor, Boston-based Great Hill Partners, has put a hold on the unspent part of the $50 million in seed money it put up to get ABI off the ground in October 1999.
News of ABI's fallback came less than one week after Philadelphia-based Digital Access Corp. announced that it was abandoning the Kansas City market.
Garofano said ABI still hopes to revisit its plans for Baltimore County, Md., where it has a provisional franchise, and for Rhode Island, where it has been issued a franchise covering most of the state.
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