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Insight Communications continues Internet service

July 1, 1993

Insight Communications continues Internet service

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Because of Internet Service Provider Excite@home’s bankruptcy filing, some broadband Internet users’ service was interrupted, specifically AT&T subscribers. However, local service was reported still to be up and unaffected.

From New York City, Insight Communications announced Dec. 3 that the company has signed an interim agreement with Excite@Home that will allow for uninterrupted service to its high-speed Internet customers for a three-month period. The company will transition, on a market-by-market basis, to one or more alternative Internet Service Providers. Insight also is exploring the implementation of multiple ISP platforms for its customers in the future.

Insight is one of several cable operators, along with Cox, Comcast, Mediacom and Rogers, that struck a deal to provide for continuing service. The specific terms of the deal include a lump payment by the cable operators of $355 million, $10 million of which is Insight’s portion.

“We have worked hard to ensure continued, uninterrupted broadband service for our customers, and it appears we have succeeded in that effort,” said Kim D. Kelly, Insight’s chief operating & financial officer. “We agreed to pay this fee in order to extend the time required to ensure an orderly transition. Customers should be very clear that this payment will not result in a price increase.”

The deal was signed on Dec. 3 and becomes binding upon approval of the Bankruptcy Court at a hearing for Excite@Home, which should occur within 20 days.

Excite@home was receiving $12 and more recently $20 per customer per month from the cable operators, according to The Washington Post.

“We are continuing our discussions with other ISPs,” continued Kelly. “The implementation of new providers is the first step in opening up our network to deliver to our customers more choice in the selection of their ISPs.”

“We are paying an exorbitant amount to keep the lights on,” said K.C. McWilliams, manager of the local Insight system. “We are paying $40 to $45 per customer per month for the 90 days. Ninety percent of our subscribers get a discount. They are paying $34.95 a month. That’s how committed we are to making sure the transition will be orderly to another Internet Service Provider.”

Insight is the ninth largest cable operator in the U.S., serving about 1.4 million subscribers.

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