Features

REDWOOD CITY — The ExciteAtHome cable modem company Monday called off a joint venture with the Dutch communications giant UnitedGlobalCom to deliver high-speed Internet access overseas. 

When the deal was announced in July, the companies said it would create the largest provider of high-speed Internet access outside North America. The venture, called Excite Chello, was to have operated in 15 countries. 

ExciteAtHome executives said “market conditions” led UnitedGlobalCom to ask for changes in the terms of the deal, and the alternative proposals would have been too complex and slowed ExciteAtHome’s international expansion. 

The company said its subscriber base is still expected to increase 25 to 30 percent this quarter, to around 3 million. 

“We do not feel any pressure to run out and do another deal,” Chief Financial Officer Mark McEachen said. 

Officials at UnitedGlobalCom did not return a call for comment. 

ExciteAtHome shares fell more than 5 percent Monday to $5.88 on the Nasdaq Stock Market, but rose as high as $6.13 in after-hours trading. 

ExciteAtHome and UnitedGlobalCom, which operates the Chello Internet service in Europe, New Zealand and Chile, were each to have contributed $93.8 million in the joint venture. Liberty Media, led by former cable industry mogul John Malone, was committed to a $187 million investment. 

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On the Net: 

http://www.excite.com 

http://www.unitedglobal.com 

Original press release: http://www.unitedglobal.com/718.htm