Why will Cbeyond stay financially strong while other competitive carriers have struggled?
First, Cbeyond raised $146 million in an initial round of private equity investment to support the build-out of the world’s first 100% VoIP Local Telephone network. We were able to select an investor group, which is highly respected in the venture capital market and experts in the telecommunications industry. Second, with our initial equity investment and additional private financing, Cbeyond is fully funded. We will not commit to additional markets that we have not fully funded in advance. This means we have the capital we need to grow and survive. More importantly, we are a new kind of communications company with new, disruptively lower economics. Many of us came from CLECs and we knew early on that we could not compete with the ILEC using ILEC technology. Our VoIP technology gives us the dramatically different infrastructure and costs that changes the business model. Customers want what we have to offer. Customers are asking for communications services they can afford, delivered ove
