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A new local public company plans to sell local-telephone service to businesses in New York City, and install telecommunications networks in large office buildings throughout the country.
FiberNet Telecom Group Inc.--which named former Time Warner Communications head Frank Chiaino president and CEO earlier this week--began trading over the counter in November, following a $5.07 million private stock placement. The company is a descendent of FiberNet Inc., which built a fiber-optic network locally in the early 1990s that now is part of WorldCom Inc.'s network.
The intra-building network business is expected to be operating in New York City by May or June, with six buildings initially, said Kimberly Mead, manager of investor relations and communications. The competitive local-exchange carrier business would start providing service later in 1998.
"We are building the network from the ground up," she said.
The net proceeds of the stock offering will provide working capital to complete the planned 384-mile network in New York City and build the digital, high-speed intra-building networks.
"The equity placement was a key objective to our growth," said Santo Petrocelii, the company's chairman.
The company also has arranged $20 million in financing from GE Capital Corp. to fund its rollout.
The company is headquartered locally but will have a sales office in New York City where Petrocelli resides and operates Petrocelli Industries Inc.
FiberNet Telecom officials plan to build a network-operations...