Insight swaps systems with AT&T Broadband

By Susan Rush
From The October 4, 2002 Edition Of CED Broadband Direct

Insight Midwest and AT&T Broadband have agreed to swap some customers.

The deal calls for Insight Midwest to exchange 13,000 Georgia customers and $25 million in cash for 23,000 of AT&T Broadband's customers in Indiana and Kentucky.

Insight Midwest is a 50-50 joint venture owned by Insight Communications and AT&T Broadband. Insight manages the company, which serves roughly 1.3 million customers in mostly concentrated in Kentucky, Illinois, Indiana and Ohio. Insight Midwest was created in January 2001 to accelerate the launch of interactive digital cable services and high-speed Internet access.

As part of Thursday's agreement, Insight Communications has agreed to manage AT&T Broadband's remaining systems in Kentucky and Indiana through June 2003. After the exchange, these systems will serve roughly 94,000 customers.

The companies expect the deal, which is subject to certain customary closing conditions and regulatory review, to close sometime during the first quarter in 2003.