Growth & epansion coming immediately like in 2 months:
3/22/99 - Plano, Texas-Based Heartland to Focus on High-Speed Internet Access
Mar. 20 (The Dallas Morning News/KRTBN)--Heartland Wireless Communications Inc. said Friday that it expects to emerge
from Chapter 11 bankruptcy reorganization within weeks with a new strategy and a new name.
The Plano-based company will change its name to Nucentrix Broadband Networks Inc. and focus on selling high-speed
Internet access and related services to small and medium-size businesses.
Heartland filed for Chapter 11 bankruptcy protection Dec. 4, a casualty of operating problems and a business model
focusing on pay television that wasn"t yielding the profits or growth that executives and investors had expected. The
company said that all classes of its creditors have approved the plan and that a U.S. bankruptcy judge in Delaware has
confirmed it. The company said it expects the plan to become final by April 1.
Heartland"s primary business has been selling pay television service to residential customers, mainly in smaller markets or
rural areas not served by cable television companies.
Heartland transmits the programming over the airwaves under spectrum licenses it acquired from the federal government.
The wireless technology allows it to set up business in a market much more cheaply than traditional cable companies. New
technology and government rules allow it to use the licenses to develop more lucrative, business-oriented applications.
"It"s a very large departure," said chairman and chief operating officer Carroll D. McHenry. He said the name change is
intended to reflect the company"s new direction.
Heartland"s pay television business, which serves 158,000 subscribers in 57 markets, will continue to operate under its
current name. The company has an agreement with DirecTV in which customers of the satellite television service can
receive local television network programming over the Heartland system.
Still, Mr. McHenry said, "The highest and best use of our spectrum is for high-speed Internet protocol applications."
The company recently began selling high-speed Internet access to small businesses in Sherman and Denison and plans to
launch the service in Austin in May. The service could be expanded to as many as eight markets by the end of 1999, but
that growth will depend on securing more funding.
The company will also attempt to add Internet-based telephone services.
Heartland expects to emerge from bankruptcy with $25 million in cash and $12 million in long-term debt relating to
spectrum licenses in more than 80 markets.
Heartland employs about 800 people, including about 100 in Plano. A small number of workers may be added in new
Internet markets.
By Jennifer Files
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(c) 1999, The Dallas Morning News. Distributed by Knight Ridder/Tribune Business News. END!A$20?DA-WIRELESS
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