Formus Broadband, the Dublin-based company which was one of four companies issued with a broadband licence by the Office of the Director of Telecommunications Regulation in 1999, is understood to be in financial difficulty.
A spokesman for the company said yesterday that "due to current market conditions, we are re-evaluating our business". "Formus Broadband has nothing more to say about the matter other than it is keeping all employees and customers fully up to date and aware of the re-evaluation process."
It is understood Formus Broadband is in discussions with Broadnet, an unsuccessful applicant for the 1999 licences. The discussions are also understood to include Interroute and are aimed at securing financial support.
Broadnet, with which Galway entrepreneur Mr Declan Ganley is associated, took a case to the courts following the granting of the broadband licences in 1999, a move which affected the rollout of the licences.
Formus employs 71 people in Dublin. It is a specialist Internet and data services company, which provides broadband connectivity primarily serving the SME market. Its parent, Denver, Colorado-based Formus Communications, may be withdrawing support in developments linked to the current market difficulties in the technology sector.
Formus Broadband last year withdrew from a proposed listing on the Nasdaq.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)