Even as bankrupt Excite@Home Corp. prepares to shut down after Feb. 28, one
chunk of the company has now been parted.
New Edge Networks Inc., a Vancouver, Wash.-based broadband business access
provider, picked up most of the assets of Excite@Home's enterprise subsidiary,
@Work, for a modest $1.5 million.
The deal, approved by U.S. Bankruptcy Court Judge Thomas Carlson, lets New
Edge take over @Work's 1,300 contract business customers in 26 metro markets
with no service interruption.
There are also a smaller number of @Work customers who have month-to-month
service arrangements with @Work who will now have to decide if they want to
continue under New Edge, according to Sal Cinquegrani, the company's executive
director of communications.
'If they choose not to, they are essentially abandoning the connection they
had with @Work,' he noted.
Also included in the deal are most of @Work's physical assets, including
customer-premises equipment; Internet connections ranging from fractional T-1 up
to OC-12; and routers installed in 33 Internet hubs nationwide.
The only exception is a handful of routers in hubs where New Edge is choosing
not to establish a presence, Cinquegrani said.
For New Edge, the deal is bargain-basement -- for $1.5 million, it will
inherit an operation expected to generate some $18 million in revenue.
It also gives New Edge, a tier-two and tier-three market player, an instant
market in several tier-one cities, including Los Angeles; San Francisco; Denver;
Washington, D.C.; Miami; Chicago; Detroit; New York; Dallas; and Seattle.
'It's a huge opportunity for us and a chance to reach into tier-one cities,'
New Edge already has 14,718 digital-subscriber-line and fractional T-1
customers, as well as another 700 wide-area-network connectivity