WASHINGTON – PathNet Inc. announced that it closed out its third round of financing by securing an additional $30 million in capital investments to the company.
PathNet is set to raise $350 million to $375 million to complete Phase I of its network, which will provide second- and third-tier U.S. cities with high density digital capacity through upgraded private microwave networks, said the company.
PathNet is upgrading these existing microwave systems with advanced digital technology, and will resell the new, expanded digital capacity to wireless companies and other network operators seeking to provide service to customers outside of major metropolitan areas not currently served by fiber networks.
Phase I construction includes the completion of 800 paths consisting of more than 20,000 miles of digital network coverage to be completed in 1999. PathNet already has initiated construction on the first 1,500 miles of the national network.
Bill Smedberg, chief financial officer for PathNet, said “having our original partners fully commit through the last round of cinancing reaffirms PathNet’s winning business strategy.”
