In 1997, Michael Malaga was a successful telecommunications executive with an idea. He wanted to sell broadband Internet access to small business in urban areas. DSL technology was just gaining acceptance, and leased telephone lines were available from telephone companies. He wanted to avoid resident customers because they would soon have inexpensive cable modern access to meet their broadband needs. He also wanted to avoid suburban and rural business to keep the telephone line leasing costs low ( lease charges are higher for longer distance). He and five friends started NorthPoint Communications with $500,000 of their combined saving and raised more money from investors and had acquired 1500 customers, but it was posting a net loss of $30 million. On the strength of its number of customers, the company began the task of raising the $100 million that Malaga estimated it would need to create the network infrastructure.