<PAGE>   1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-Q/A

         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999

                        COMMISSION FILE NUMBER: 333-43339

                             KNOLOGY HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                                 <C>
                 DELAWARE                                                         58-2203141
-------------------------------------------                         ---------------------------------------
     (State or other jurisdiction of                                           (I.R.S. Employer
      incorporation or organization)                                         Identification No.)

          KNOLOGY HOLDINGS, INC.
         1241 O.G. SKINNER DRIVE
           WEST POINT, GEORGIA                                                      31833
-------------------------------------------                         ---------------------------------------
 (Address of principal executive offices)                                         (Zip Code)
</TABLE>

       Registrant's telephone number, including area code: (706) 645-8553

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                 Yes [X*] No [ ]

         As of March 31, 1999, there were 394 shares of the registrant's Common
Stock outstanding and 49,852 shares of the registrant's Preferred Stock
outstanding.

*   The Company does not have any class of equity securities registered under
    the Securities Exchange Act of 1934 and files periodic reports with the
    Securities and Exchange Commission pursuant to contractual obligations with
    third parties.



<PAGE>   2
                                EXPLANATORY NOTE

     Our parent company, KNOLOGY, Inc., has filed a registration statement on
Form S-1 with the Securities and Exchange Commission (Registration No.
333-89179). We are amending our quarterly report on Form 10-Q for the quarter
ended March 31, 1999 to make conforming changes.

     This Form 10-Q/A presents information relating to our quarter ended March
31, 1999 and does not include any updated information or discuss any recent
developments occurring after the original filing of our Form 10-Q for the
quarter ended March 31, 1999 in May 1999.

<PAGE>   3


                     KNOLOGY HOLDINGS, INC. AND SUBSIDIARIES

                               INDEX TO FORM 10-Q


<TABLE>
<CAPTION>
PART I                     FINANCIAL INFORMATION                                                                   PAGE
<S>      <C>               <C>      <C>                                                                            <C>
         ITEM 1            FINANCIAL STATEMENTS..................................................................    2

                           Consolidated Balance Sheets as of  March 31, 1999 and
                                    December 31, 1998............................................................    2
                           Consolidated Statements of Operations for the three months ended
                                    March 31, 1999 and 1998......................................................    3
                           Consolidated Statement of Cash Flows for the three months ended
                                    March 31, 1999 and 1998......................................................    4
                           Notes to Financial Statements.........................................................    5

         ITEM 2            MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND
                                    RESULTS OF OPERATIONS........................................................    7

PART II           OTHER INFORMATION

         ITEM 6            EXHIBITS AND REPORTS ON FORM 8-K......................................................    14
</TABLE>



                                       1
<PAGE>   4


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                    KNOLOGY HOLDINGS, INC. and SUBSIDIARIES

                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      MARCH 31,        DECEMBER 31,
                                                                        1999                1998
                                                                    ------------       ------------
<S>                                                                 <C>                <C>
                                    ASSETS
CURRENT ASSETS:
      Cash and cash equivalents                                     $         --       $  4,859,508
      Marketable securities                                           46,658,227         66,231,397
      Affiliate receivable                                             8,245,182          6,785,691
      Accounts receivable, net                                         4,675,418          5,108,491
      Prepaid expenses                                                   843,399            430,811
                                                                    ------------       ------------
                Total current assets                                  60,422,226         83,415,898
PROPERTY AND EQUIPMENT, net                                          211,055,232        195,496,617
INVESTMENT IN CLEARSOURCE, INC                                           825,072            825,072
INTANGIBLE AND OTHER ASSETS, net                                      49,141,849         52,606,063
OTHER                                                                    207,000            207,000
                                                                    ------------       ------------
Total assets                                                        $321,651,379       $332,550,650
                                                                    ============       ============

                LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
      Current portion of long-term debt                             $     12,174       $     12,174
      Bank overdraft                                                   6,894,336                 --
      Accounts payable                                                11,069,964          6,366,923
      Accrued liabilities                                              5,584,261         22,215,281
      Unearned revenue                                                 2,144,835          2,116,083
                                                                    ------------       ------------
                Total current liabilities                             25,705,570         30,710,461
NONCURRENT LIABILITIES:
      Long-term notes payable                                            119,138            122,070
      Long-term accrued interest payable                              25,807,645         21,036,541
      Bonds payable, net of discount                                 266,763,143        263,206,292
                                                                    ------------       ------------
                Total liabilities                                    318,395,496        315,075,364
WARRANTS                                                               2,486,960          2,486,960
STOCKHOLDERS' EQUITY
      Convertible preferred stock                                            499                499
      Common Stock                                                             4                  4
      Additional paid-in capital                                      64,864,366         64,864,366
      Accumulated deficit                                            (64,088,878)       (49,878,931)
      Unrealized gain (loss) on marketable securities (Note 4)            (7,068)             2,388
                                                                    ------------       ------------
                Total stockholders' equity                               768,923         14,988,326
                                                                    ------------       ------------
                Total liabilities and stockholders' equity          $321,651,379       $332,550,650
                                                                    ============       ============
</TABLE>


         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.



                                       2
<PAGE>   5


                    KNOLOGY HOLDINGS, INC. and SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED
                                                              MARCH 31,
                                                       1999              1998
                                                   ------------       -----------
<S>                                                <C>                <C>
OPERATING REVENUES                                   10,030,805         4,108,464
OPERATING EXPENSES:
       Cost of services                               4,837,541         1,773,053
       Selling, operating, and administrative         8,524,017         3,941,848
       Depreciation and amortization                  7,733,899         1,696,820
                                                   ------------       -----------
                   Total                             21,095,457         7,411,721
                                                   ------------       -----------
OPERATING LOSS                                      (11,064,652)       (3,303,257)
OTHER INCOME AND EXPENSES:
       Interest income                                  722,159         3,198,507
       Interest expense                              (7,795,748)       (6,987,817)
       Other income (expense), net                       45,161            60,000
                                                   ------------       -----------
                   Total                             (7,028,428)       (3,729,310)
                                                   ------------       -----------
LOSS BEFORE INCOME TAX BENEFIT                      (18,093,080)       (7,032,567)
INCOME TAX BENEFIT                                    3,883,133                --
                                                   ------------       -----------
NET LOSS                                           $(14,209,947)      $(7,032,567)
                                                   ============       ===========
NET LOSS PER SHARE:
       Basic and diluted                           $      (1.90)      $     (0.94)
                                                   ============       ===========
WEIGHTED AVERAGE SHARES OUTSTANDING                   7,478,194         7,497,750
                                                   ============       ===========
</TABLE>

         The accompanying notes are an integral part of these condensed
                       consolidated financial statements.



                                       3
<PAGE>   6


                   KNOLOGY HOLDINGS, INC. and SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                THREE MONTHS ENDED MARCH 31,
                                                                                   1999               1998
                                                                               ------------       ------------
<S>                                                                            <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
       Net loss                                                                $(14,209,947)      $ (7,032,567)
       Adjustments to reconcile net loss to net cash
          used in operating activities:
             Depreciation and amortization                                        7,733,899          1,696,820
             Loss on disposition of assets                                           (5,416)                --
             Amortization of bond discount                                        3,556,851          3,159,073
             Changes in current assets and liabilities:
                  Accounts receivable                                               433,073            (99,412)
                  Accounts receivable - affiliate                                (1,459,491)                --
                  Prepaid expenses and other                                       (422,045)           (88,374)
                  Accounts payable & bank overdraft                              11,597,377         (1,574,438)
                  Accrued liabilities and interest                              (12,039,916)         4,951,947
                  Unearned revenue                                                   28,752             54,329
                                                                               ------------       ------------
                      Total adjustments                                           9,423,084          8,099,945
                                                                               ------------       ------------
                      Net cash provided by (used in) operating activities        (4,786,863)         1,067,378

CASH FLOWS FROM INVESTING ACTIVITIES:
       Capital expenditures, net of retirements                                 (19,452,076)       (14,075,955)
       Acquisitions, net                                                                 --            (76,788)
       Organizational and franchise cost expenditures, net                         (264,891)                --
       Proceeds form sales of assets                                                 54,361                 --
       Proceeds from sales of marketable securities, net                         19,573,170         11,839,241
                                                                               ------------       ------------
                  Net cash used in investing activities                             (89,436)        (2,313,502)

CASH FLOWS FROM FINANCING ACTIVITIES:
       Expenditures related to issuance of debt                                      19,723           (124,923)
       Principal payments on debt                                                    (2,932)            (2,656)
                                                                               ------------       ------------
                  Net cash (used in) provided by financing activities                16,791           (127,579)
                                                                               ------------       ------------

NET INCREASE (DECREASE) IN CASH                                                  (4,859,508)        (1,373,703)

CASH AT BEGINNING OF PERIOD                                                       4,859,508          6,144,581
                                                                               ------------       ------------

CASH AT END OF PERIOD                                                          $         --       $  4,770,878
                                                                               ============       ============



SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

       Cash paid during the period for interest                                $      7,124       $      3,647
       Cash paid during the period for income taxes                            $         --       $         --
</TABLE>



                                       4
<PAGE>   7


                     KNOLOGY HOLDINGS, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 1999
                                   (UNAUDITED)



1.       ORGANIZATION AND NATURE OF BUSINESS

         KNOLOGY offers residential and business customers broadband
         communications services ("Broadband Services"), including analog and
         digital cable television, local and long distance telephone, high-speed
         Internet access service, and broadband carrier services ("BCS"). The
         Company provides these Broadband Services using high capacity hybrid
         fiber-coaxial networks that are two-way interactive ("Interactive
         Broadband Networks"). The Company operates Interactive Broadband
         Networks in five metropolitan areas (collectively the "Systems"):
         Montgomery, Alabama; Columbus and Augusta, Georgia; Panama City;
         Florida; and Charleston, South Carolina and plans to expand to
         additional mid-sized cities in the southeastern United States. In
         addition, KNOLOGY provides analog cable television services in
         Huntsville, Alabama and is currently upgrading the Huntsville network
         to an Interactive Broadband Network, which will allow the Company to
         offer additional Broadband Services in the Huntsville market.

         The Company has experienced operating losses as a result of the
         expansion of the advanced broadband communications networks and
         services into new and existing markets. The Company expects to continue
         to focus on increasing its customer base and expand its broadband
         operations. Accordingly, the Company expects that its operating
         expenses and capital expenditures will continue to increase as it
         extends its broadband communications networks in the existing and new
         markets in accordance with its business plan. While management expects
         its expansion plans to result in profitability, there can be no
         assurance that growth in the Company's revenue or customer base will
         continue or that the Company will be able to achieve or sustain
         profitability and/or positive cash flow.

2.       BASIS OF PRESENTATION

         The accompanying unaudited condensed consolidated financial statements
         of the Company have been prepared in accordance with generally accepted
         accounting principles for interim financial information and with the
         instructions to Form 10-Q and Article 10 of Regulation S-X.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         considered necessary for the fair presentation of the financial
         statements have been included, and the financial statements present
         fairly the financial position and results of operations for the interim
         periods presented. Operating results for the three months ended March
         31, 1999 are not necessarily indicative of the results that may be
         expected for the year ended December 31, 1999. These financial
         statements should be read in conjunction with the Company's 1998 Annual
         Report on Form 10-K including the 1998 consolidated financial
         statements with footnotes. Certain prior year amounts have been
         reclassified to conform with the current presentation.



                                       5
<PAGE>   8


3.       NEW ACCOUNTING PRONOUNCEMENTS

         In June 1998, the Financial Accounting Standards Board ("FASB") issued
         Statement of Financial Accounting Standard No. 133 ("SFAS 133"). This
         statement, which establishes accounting and reporting standards for
         derivative instruments and for hedging activities, is effective for the
         first quarter of fiscal years beginning after June 15, 1999. The
         Company does not currently have any items subject to disclosure
         pursuant to SFAS 133.

         During 1998, the Company adopted the provisions of AICPA Statement of
         Position 98-5, "Reporting on the Costs of Start-up Activities," which
         requires that all non-governmental entities expense costs of start-up
         activities, including pre-operating, pre-opening and organization
         activities, as the costs are incurred. The Company expenses all startup
         costs as they are incurred.

4.       COMPREHENSIVE INCOME

         During 1997, the Financial Accounting Standards Board issued SFAS No.
         130, "Reporting Comprehensive Income", which the Company adopted as of
         January 1, 1997. SFAS No. 130 requires the Company to report in their
         financial statements, in addition to its net income (loss),
         comprehensive income (loss), which includes all changes in equity
         during a period from non-owner sources including, as applicable,
         foreign currency items, minimum pension liability adjustments and
         unrealized gains and losses on certain investments in debt and equity
         securities. The Company's unrealized loss on marketable securities for
         the three months ended March 31, 1999 and the year ended December 31,
         1998 is reported in the Stockholders' Equity section of the Company's
         Condensed Consolidated Balance Sheets.

5.       SEGMENT INFORMATION

         Effective January 1998, the Company adopted SFAS 131, "Disclosures
         about segments of an Enterprise and Related Information," which
         established revised standards for the reporting of financial and
         descriptive information about operating segments in financial
         statements.

         The Company owns and operates advanced hybrid fiber-coaxial networks
         and provides residential and business customers broadband
         communications services, including analog and digital cable television,
         local and long distance telephone, data and broadband carrier services
         ("BCS"). Data services include high-speed Internet access via cable
         modems. BCS includes local transport services such as local Internet
         transport, special access, local private line, and local exchange
         transport services.

         While management of the Company monitors the revenue generated from
         each of the various broadband services, operations are managed and
         financial performance is evaluated based upon the delivery of a
         multiple of the services to customers over a single network. As a
         result of multiple services being provided over a single network, there
         are many shared expenses and shared assets related to providing the
         various broadband services to customers. Management believes that any
         allocation of the shared expenses or assets to the broadband services
         would be arbitrary and impractical.



                                       6
<PAGE>   9


         Revenues by broadband communications service are as follows:

<TABLE>
<CAPTION>
                                           AS OF MARCH 31,
                                        1999             1998
                                    -----------      ----------
         <S>                        <C>              <C>
         Cable Television           $ 8,185,103      $3,998,833
         Telephone                    1,547,460          88,426
         Data and BCS                   298,242          21,208
                                    -----------      ----------
         Consolidated Revenues      $10,030,805      $4,108,464
                                    ===========      ==========
</TABLE>
----------

ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
               RESULTS OF OPERATIONS


          THIS REPORT CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE
RISKS AND UNCERTAINTIES. IN ADDITION, MEMBERS OF OUR SENIOR MANAGEMENT MAY, FROM
TIME TO TIME, MAKE CERTAIN FORWARD-LOOKING STATEMENTS CONCERNING OUR OPERATIONS,
PERFORMANCE AND OTHER DEVELOPMENTS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE ANTICIPATED IN SUCH FORWARD-LOOKING STATEMENTS AS A RESULT OF VARIOUS
FACTORS, INCLUDING THOSE SET FORTH UNDER THE CAPTION "BUSINESS-RISK FACTORS" IN
OUR 1998 ANNUAL REPORT ON FORM 10-K.


          The following is a discussion of our consolidated financial condition
and results of operations for the three months ended March 31, 1999 and certain
factors that are expected to affect our prospective financial condition. The
following discussion and analysis should be read in conjunction with the
financial statements and notes thereto and other financial data included
elsewhere in this Form 10-Q.

GENERAL

          We offer our customers broadband communications services, including:

               -    traditional and digital cable television;

               -    local and long distance telephone; and

               -    high-speed Internet access service.

          Our customers have the choice of receiving these services individually
or as part of a bundle of services. In addition, we sell access to our network
and provide various network-related services to other telecommunications
companies, such as long distance telephone companies and Internet service
providers.

          We provide all of these services using high-speed broadband networks
that are two-way interactive. Broadband networks are high-capacity, which means
they can handle large volumes of voice, video and data. Two-way interactive
networks give customers the ability to send and receive signals at the same
time. Two-way interactive networks are required for telephone service and
provide for higher speed Internet connections than traditional one-way networks.
It is important to our strategy to provide bundled high-speed communications
services that our networks are broadband and two-way interactive.

          We have been providing cable television service since 1995, telephone
and high-speed Internet access services since 1997 and broadband carrier
services since 1998. We own, operate and manage interactive broadband networks
in the five metropolitan areas of Montgomery, Alabama; Columbus and Augusta,
Georgia; Panama City, Florida and Charleston, South Carolina; and we plan to
expand to additional mid-sized cities in the southeastern United States. In
addition, we provide traditional analog and digital cable television services in
Huntsville, Alabama. Our Huntsville facilities are being upgraded to provide
local and long distance telephone and high-speed Internet access services.

          We began providing cable television service by acquiring cable
television systems in Montgomery, Alabama and Columbus, Georgia in 1995 and
using these systems as a base for constructing new interactive broadband
networks. Since acquiring the Montgomery and Columbus systems, we have
significantly expanded these networks and upgraded the acquired networks to
offer additional broadband communications services.

          In December 1997, we acquired a cable television system in Panama City
Beach, Florida. We are currently upgrading this cable system and extending the
network into the Panama City metro area. We expect to complete this upgrade in
2000.

          In early 1998, we began expanding into Augusta, Georgia and
Charleston, South Carolina by obtaining new franchise agreements with the local
governments and by constructing new interactive broadband networks. We expect to
complete construction of these networks by 2003.


                                       7

<PAGE>   10

          In June 1998, we acquired TTE Inc., a non-facilities based reseller of
local, long distance and operator services to small and medium-sized business
customers throughout South Carolina.

          In October 1998, we acquired the Cable Alabama cable television system
serving the Huntsville, Alabama area. The existing Cable Alabama plant is being
upgraded to an interactive broadband network which will be completed by 2001.

REVENUES AND EXPENSES

          We can group our revenues into four categories: video revenues,
telephone revenues, Internet revenues and other revenues.

               - Video revenues. Our video revenues consist of fixed monthly
     fees for basic, premium and digital cable television services, as well as
     fees from pay-per-view movies and events such as boxing matches and
     concerts, that involve a charge for each viewing. Video revenues accounted
     for approximately 81.1% of our consolidated revenues for the three months
     ended March 31, 1999.

               - Telephone revenues. Our telephone revenues consist primarily of
     fixed monthly fees for local service, enhanced services such as call
     waiting and voice mail and usage fees for long distance service. Telephone
     revenues accounted for approximately 15.4% of our consolidated revenues for
     the three months ended March 31, 1999.

               - Internet revenues and other revenues. Our Internet revenues
     consist primarily of fixed monthly fees for Internet access service and
     rental of cable modems. Other revenues resulted principally from broadband
     carrier services and video production services. These combined revenues
     accounted for approximately 3.5% of our consolidated revenues for the
     three months ended March 31, 1999.

          Our operating expenses include cost of services expenses, selling,
operations and administrative expenses and depreciation and amortization
expenses.

          Cost of services expenses include:


               - Video cost of services. Video cost of services consist
     primarily of monthly fees to the National Cable Television Cooperative and
     other programming providers, and are generally based on the average number
     of subscribers to each program. Programming costs accounted for
     approximately 73.2% of our operating expenses for the three months ended
     March 31, 1999. Programming costs is our largest single cost and we expect
     this to continue. Since this cost is based on numbers of subscribers, it
     will increase as we add more subscribers.

               - Telephone and Internet access services. Cost of services
     related to our telephone and Internet access services include costs of
     Internet transport and telephone switching, and interconnection and
     transport charges payable to local and long distance carriers.

          Selling, operations and administrative expenses include:

               - Sales and marketing costs. Sales and marketing costs include
     the cost of sales and marketing personnel and advertising and promotional
     expenses.

               - Network operations and maintenance expenses. Network operations
     and maintenance expenses include payroll and departmental costs incurred
     for network design and maintenance monitoring.

               - Customer service expenses. Customer service expenses include
     payroll and departmental costs incurred for customer service
     representatives and management.

               - General and administrative expenses. General and administrative
     expenses consist of corporate and subsidiary general management and
     administrative costs.

          Depreciation and amortization expenses include:

                                       8
<PAGE>   11
               - Depreciation and amortization expenses. Depreciation and
     amortization expenses include depreciation of our interactive broadband
     networks and equipment, and amortization of cost in excess of net assets
     and other intangible assets related to acquisitions.


RESULTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 1999 COMPARED WITH THREE MONTHS ENDED MARCH 31,
1998


          The following table sets forth financial data as a percentage of
operating revenues for the three months ended March 31, 1998 and 1999.

<TABLE>
<CAPTION>
                                                                                                     Three Months
                                                                                                        ended
                                                                                                      March 31,
                                                                                                   ---------------
                                                                                                   1998       1999
                                                                                                   ----       ----
<S>                                                                                                <C>        <C>
         Operating revenues........................................                                100%       100%
                                                                                                   ---        ---
         Operating expenses:
           Cost of services........................................                                 43         48
           Selling, operating and administrative...................                                 96         85
           Depreciation and amortization...........................                                 41         77
                                                                                                   ---        ---
                   Total...........................................                                180        210
                                                                                                   ---        ---
         Operating income (loss)...................................                                (80)      (110)
         Other income and expenses.................................                                (90)       (70)
                                                                                                   ---        ---
         Income (loss) before minority interest and income tax
           (provision) benefit.....................................                               (170)      (180)
         Income tax (provision) benefit............................                                  0         39
                                                                                                   ---        ---
         Net income (loss).........................................                               (170)%     (141)%
                                                                                                   ===        ===
</TABLE>


          The following table sets forth certain operating data
for the three months ended March 31, 1999 and 1998. The information provided
in the table reflects revenue-generating connections as of the dates
indicated. Please see the footnotes provided for information regarding revenue-
generating connections.


<TABLE>
<CAPTION>
                                             THREE MONTHS ENDED
                                                  MARCH 31,
                                         --------------------------
                                           1999              1998              CHANGE             %
                                         --------          --------            -------       -------
<S>                                      <C>                <C>                <C>           <C>
HOMES RELEASED TO SALES                   246,575           139,959            106,616          76.2%

Connections (1)
  Video                                    80,068            41,976             38,092          90.7%

  Telephone
    On - Net (2)                            3,904               623              3,281         526.6%
    Off - Net (3)                           5,864                 0              5,864         100.0%
                                          -------           -------            -------       -------
                                            9,768               623              9,145       1,467.9%

  High-speed Internet                       1,405               244              1,161         475.8%
                                          -------           -------            -------       -------
                     Total                 91,241            42,843             48,398          88.5%
                                          =======           =======            =======       =======
</TABLE>

(1) Connections represent revenue-generating connections. For video and high-
    speed Internet, connections represent the number of customers subscribing
    to the service. For telephone, connections represent the number of lines
    connected. For example, a telephone customer that has two lines would be
    counted as two connections.

(2) On-net refers to lines provided over our broadband networks.

(3) Off-net consists of all telephone connections provided within our
    broadband network area over telephone lines leased from third parties.


          REVENUES. Operating revenues for the three months ended March 31, 1999
increased 144% to $10.0 million, compared to $4.1 million for the three months
ended March 31, 1998. The increased revenues are primarily due to a higher
number of connections during the three months ended March 31, 1999 compared to
the same period in 1998. The additional connections resulted primarily from:

               - the extension of our broadband networks in the Montgomery,
     Columbus and Panama City markets,

               - the initial offering of broadband services in the Augusta and
     Charleston markets at the end of the third quarter of 1998, and

               - the acquisition of TTE and Cable Alabama systems in June 1998
     and October 1998, respectively.

          EXPENSES. Our operating expenses for the three months ended March 31,
1999, excluding depreciation and amortization, increased 134.4% to $13.4
million, compared to $5.7 million for the three months ended March 31, 1998.
Cost of services were $4.8 million in 1999 compared to $1.8 million in 1998.
Selling, operating, and administrative expenses were $8.5 million and $3.9
million, respectively, for such periods. The increase in our cost of services
and selling, operating, and administrative expenses is consistent with the

                                       9
<PAGE>   12
growth in revenues and is due to the expansion of our operations and the
increase in the number of employees in connection with such expansion and growth
into new markets.

          Depreciation and amortization for the three months ended March 31,
1999 increased to $7.7 million, compared to $1.7 million for the three months
ended March 31, 1998. This increase is due to a significant increase in
property, plant, equipment and intangible assets resulting from the expansion of
our networks; the acquisition of the TTE and Cable Alabama systems; and the
purchase of buildings, computers and office equipment at the corporate and
subsidiary locations.

          Interest expense for the year ended March 31, 1999 increased to $7.8
million, compared to $7.0 million for the three months ended March 31, 1998. The
increase in interest expense reflects the accrual of the interest expense
attributable to the senior discount notes issued in October 1997.

          Interest income for the three months ended March 31, 1999 was
$722,000, compared to $3.2 million for the same period in 1998 and reflects the
interest earned from the investment of certain proceeds received from the
issuance of the senior discount notes in October 1997. The decrease in interest
income is due to the draw down of cash to fund planned expansion and
acquisitions.

          NET LOSS. We incurred a net loss for the three months ended March 31,
1999 of $14.2 million, compared to a net loss of $7.0 million for the three
months ended March 31, 1998. We expect our net losses to continue to increase as
we continue to expand our business.

LIQUIDITY AND CAPITAL RESOURCES.

          As of March 31, 1999, we had net working capital of $34.7 million,
compared to $52.7 million at December 31, 1998.

          We have required equity infusions and debt proceeds to finance a
significant portion of our operating, investing and financing activities in the
development of our business. For the three months ended March 31, 1999, we used
approximately $4.8 million in cash flows from operating activities and used
approximately $89,000 in cash flows from investing activities. Our operating
activities consisted primarily of $14.2 million of net loss and $1.9 million of
changes in current assets and liabilities, which were partially offset by $7.7
million of depreciation and amortization and $3.6 million of bond accretion on
our senior discount notes. Our investing activities for the three months ended
March 31, 1999 primarily consisted of $19.5 million of capital expenditures
which were funded primarily by proceeds from the sale of short-term investments
of $19.6 million. The short-term investments sold represent a portion of the
proceeds received from the October 22, 1997 offering of senior discount notes
that were invested in marketable securities.

FUNDING TO DATE

          On October 22, 1997, we received net proceeds of approximately $242.4
million from the offering of units consisting of senior discount notes due 2007
and warrants to purchase preferred stock. The notes were sold at a substantial
discount from their principal amount at maturity and there will not be any
payment of interest on the notes prior to April 15, 2003. The notes will fully
accrete to face value of $444.1 million on October 15, 2002. From and after
October 15, 2002, the notes will bear interest, which will be payable in cash,
at a rate of 11 7/8% per annum on April 15 and October 15 of each year,
commencing April 15, 2003. The indenture contains covenants that affect, and in
certain cases significantly limit or prohibit, our ability to:


               - incur indebtedness;

               - pay dividends;

               - prepay subordinated indebtedness;

               - redeem capital stock;

               - make investments;

               - engage in transactions with stockholders and affiliates;

               - create liens;

               - sell assets; and

               - engage in mergers and consolidations.


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<PAGE>   13
          If we fail to comply with these covenants, our obligation to repay the
notes may be accelerated. However, these limitations are subject to a number of
important qualifications and exceptions. In particular, while the indenture
restricts our ability to incur additional indebtedness by requiring compliance
with specified leverage ratios, it permits us and our subsidiaries to incur an
unlimited amount of indebtedness to finance the acquisition of equipment,
inventory and network assets and to secure such indebtedness, and to incur up to
$50 million of additional secured indebtedness. Upon a change of control, as
defined in the indenture, we would be required to make an offer to purchase the
notes at a purchase price equal to 101% of their accreted value, plus accrued
interest.

          Each unit in the offering also consisted of a warrant to purchase
0.003734 shares of our preferred stock at an exercise price of $0.01 per share.

          In connection with the units offering, we completed an equity private
placement, in which we issued approximately 21,400 additional shares of
Preferred Stock at $1,500 per share to ITC Holding, Century Telephone
Enterprises, Inc., SCANA Communications, Inc., South Atlantic Venture Fund III,
Limited Partnership and AT&T venture funds for aggregate proceeds of
approximately $32.2 million. ITC Holding, Century Telephone, South Atlantic,
AT&T venture funds and SCANA Communications, Inc. purchased approximately $10.0
million, $2.5 million, $5.5 million, $5.0 million and $5.0 million of preferred
stock, respectively, in this private placement. A portion of the proceeds from
this private placement were used to repay approximately $11.0 million in
borrowings from SCANA and an additional $11.0 million of debt we incurred to
finance the purchase of our cable television systems in Montgomery, Alabama and
Columbus, Georgia in 1995. ITC Holding subsequently repurchased all shares of
our preferred stock owned by Century Telephone, South Atlantic and SCANA during
1998.

          On December 22, 1998, we entered into a $50 million four-year senior
secured credit facility with First Union National Bank and First Union Capital
Markets Corp. The credit facility allows us to borrow up to five times a certain
individual subsidiary's annualized consolidated adjusted cash flow, as defined
in the credit facility agreement. The credit facility may be used for working
capital and other purposes, including capital expenditures and permitted
acquisitions. At our option, interest will accrue based on either the prime or
federal funds rate plus applicable margin or the LIBOR rate plus applicable
margin. The applicable margin may vary from .50% to 2.50% based on our leverage
ratio. The credit facility contains a number of covenants including, among
others, covenants limiting our ability and the ability of our subsidiaries to:


               - incur debt;

               - create liens;

               - pay dividends;

               - make distributions or stock repurchases;

               - make certain investments;

               - engage in transactions with affiliates;

               - sell assets; and

               - engage in mergers and acquisitions.

          The credit facility also includes covenants requiring compliance with
certain operating and financial ratios on a consolidated basis, including the
number of revenue generating units and average revenue per subscriber. We are
currently in compliance with these covenants. Should we not be in compliance
with the covenants in the future, we would be in default and would require a
waiver from the lender. In the event the lender would not provide a waiver,
amounts outstanding against the facility could be payable to the lender on
demand. A change of control of our company, as defined in the credit facility
agreement, would constitute a default under the covenants. To date, no funds
have been drawn against the credit facility.

FUTURE FUNDING

          Our business requires substantial investment to finance capital
expenditures and related expenses, to expand and/or upgrade the interactive
broadband networks, to fund subscriber equipment and to maintain the quality of
our networks. We currently expect to spend approximately $94 million for capital
expenditures during 1999, including the planned expansion and/or upgrade of the
Montgomery, Columbus, Panama City, Augusta, Charleston and Huntsville networks.
We currently expect to spend approximately $9 million to fund operating losses
and approximately $131 million for capital expenditures during 2000. The $131
million includes approximately $70 million related to the construction of
networks in our existing markets. The remainder primarily relates to the
purchase of equipment for customer premises, such as set-top cable boxes,
information systems and the commencement of the construction of networks in
additional markets. Failure to have access to additional funds during 2000 could
require us to delay some of our construction plans, delay preliminary efforts in
new markets and possibly require us to restrict or reduce the level of
operations in some markets.



                                       11
<PAGE>   14
          We presently estimate the cost to complete construction of the
networks in our existing markets to be approximately $170 million, of which
approximately $70 million would be expended during 2000. We currently expect
that if sufficient funds are raised, the construction of our networks in our
existing markets would be substantially completed during 2002.

          We presently expect that present cash reserves, cash flow from
operations, funding obtained through our existing credit facility and the
private offering discussed below will be sufficient to fund our 2000 capital
expenditures. We will need additional capital to complete construction of our
networks through 2002. We expect to raise this capital through private and
public debt offerings and private and public equity offerings, although there is
no assurance that this financing will be available on terms favorable to us. If
we are not successful in raising additional capital, we may not be able to
complete the construction of our networks throughout our current markets. This
may cause us to violate our franchises agreements, which could adversely affect
us, or may just limit our growth within these markets.

          We plan to expand to additional mid-sized cities in the southeastern
United States. We estimate the cost of constructing networks and funding initial
subscriber equipment in additional new cities at approximately $50 to $75
million per city, though our costs could be as much as $85 million to $90
million per city for larger markets. The actual costs of each new market may
vary significantly from this range and will depend on the number of miles of
network to be constructed, the geographic and demographic characteristics of the
city, costs associated with the cable franchise in each city, the number of
subscribers in each city, the mix of services purchased, the cost of subscriber
equipment we pay for or finance and other factors. We will need additional
financing to expand into additional cities, for new business activities or in
the event we decide to make additional acquisitions. We expect to raise this
capital through private and public debt offerings and private and public equity
offerings, although there is no assurance that this financing will be available
on terms favorable to us. If we are not successful in raising additional
capital, we will not be able to expand to additional cities as planned. The
schedule for our planned expansion will depend upon the availability of
sufficient capital. Definitive decisions on which cities will be chosen for
expansion are not expected to be made until this capital has been raised.

THE YEAR 2000 ISSUE

          General

          The year 2000 issue is a general term used to describe the various
problems that may result in computers and other machinery as we reach the year
2000. These problems generally arise from the fact that most of the world's
computers have historically used only two digits to identify the year in a date,
often meaning that the computer will fail to distinguish dates in the 2000's
from dates in the 1900's.

          These problems are expected to increase in frequency and severity as
the year 2000 approaches. This issue impacts our owned or licensed computer
systems and equipment used in connection with internal operations.

          Third Parties

          We also rely directly and indirectly, in the regular course of
business, on the proper operation and compatibility of third party systems. The
year 2000 problem could cause these systems to fail, err, or become incompatible
with our systems.

          Certain of our suppliers and vendors could have a material affect on
our business if they fail to become year 2000 ready. In these cases, we are
relying on the determination by an outside testing company that these vendors
and suppliers are ready for the year 2000. Also, we have conducted our own
testing of certain major components of the systems provided to us by third
parties. Nonetheless, if we or a significant third party on which we rely fails
to become year 2000 ready, or if the year 2000 problem causes our systems to
become internally incompatible or incompatible with such third party systems,
our business could suffer from material disruptions, including the inability to
process transactions, send invoices, accept customer orders or provide customers
with our services. We could also face similar disruptions if the year 2000
problem causes general widespread problems or an economic crisis. We cannot now
estimate the extent of these potential disruptions.

          Our State of Readiness

          We established a year 2000 program office to coordinate activity and
report to our executive management and board of directors with regard to the
year 2000 issue. Our year 2000 program office developed a plan for us to become
year 2000 ready. This plan covered:


     - our technology and operating systems;

     - billing of our cable, telephone and Internet services;

     - customer service;

     - financial operations and reporting;

     - network monitoring; and

     - the systems of our major vendors, third party service providers and other
     material service and content providers.




                                       12
<PAGE>   15

          We addressed our year 2000 plan with respect to our internal
operations in six phases:

     - an awareness phase, in which we inventoried and evaluated our systems,
     components and other significant infrastructure;

     - an assessment phase, in which we identified those elements that
     reasonably could be expected to be affected by year 2000 problems;

     - a remediation phase, in which we remediated or replaced equipment that we
     believe would fail to operate properly in the year 2000;

     - a testing and validation phase, in which we tested the remediation and
     replacement conducted and validated its ability;

     - an implementation phase, in which we added our new or updated equipment
       to our current systems; and

     - a contingency phase, in which we developed contingency plans for our
     at-risk business functions.

We have completed all phases of our plan for all of our services and systems.

          Certain actions in the remediation phase have been conducted by the
third parties who provide hardware, software, or services that comprise our
systems. We have polled all the third parties who provide material hardware,
software, or services as part of our information technology and operating
systems with regard to each of such third party's year 2000 compliance plan and
state of readiness. We have actively sought responses from all vendors and third
parties as to year 2000 compliance, status of plans and readiness. All key
vendors have responded and most of the third parties have assured us that their
hardware and/or software is currently or will be year 2000 compliant before the
end of the year. We expect to have any remaining non-compliant systems in
compliance before the end of 1999.

          Costs

          To date, we have incurred approximately $450,000 of costs in
connection with our year 2000 plan, and we anticipate spending approximately
$150,000 in additional funds. We expense all costs associated with our Year 2000
plan as we incur them and anticipate funding the costs of our plan from cash
flows. To date, we have not deferred any specific information technology
projects because of the costs of our plan.

          Risks

          The failure to correct a material year 2000 problem or to implement a
contingency plan could result in system failures leading to a disruption in, or
failure of, certain normal business activities or operations. Such failures
could materially and adversely affect our business, profitability and operating
results.

          Contingency Plans

          We have a year 2000 contingency planning committee, which has
developed year 2000 contingency plans for all of our information technology and
operating systems and for each of our locations. This committee identified key
business risks which were used to drive the development of these plans.
Additionally, we use an outside consulting service to assist in our year 2000
readiness, project coordination and execution of the year 2000 plan.

          Contingency planning to maintain and restore service in the event of
natural disasters, power failures and systems-related problems is a routine part
of our operations. We believe that such contingency plans will assist us in
responding to any failure by outside service providers to successfully address
year 2000 issues. In addition, we have developed complete contingency plans that
address our most reasonably likely worst case year 2000 scenarios including
identification of alternate vendors and service providers and manual
alternatives to system operations.

          Our contingency plans for the components of our operations that are
provided by third parties and are of greatest concern to us in the event of a
year 2000 problem are:

     - Network. To prepare for potential year 2000 problems affecting our
     network, we have leased more facilities to provide greater redundancy. We
     have also received vendor assurances with regard to our network.

     - Billing. We have conducted our own testing of our billing systems. In
     addition, we are relying on third-party verification that these systems are
     ready for the year 2000.

     - Switching. A switch is a device that directs voice and data traffic over
     a network. Switching is the process of connecting the calling party with
     the called party through one or more switches. We have only one switch,
     through which we route all of our telephone data transmissions. A team of
     specialists from an outside consulting service will be on call to provide
     backup support in the event of any year 2000 problems. The switching
     functions have also been tested by us and by third-parties for year 2000
     readiness.

ITEM 2A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

          We are exposed to market risk from changes in interest rates. We
manage our exposure to this market risk through our regular operating and
financing activities. Derivative instruments are not currently used and, if
utilized, are employed as risk management tools and not for trading purposes.

          We have no derivative financial instruments outstanding to hedge
interest rate risk. To date, no funds have been drawn against our credit
facility. However, any borrowings under our credit facility which are based on
either prime rate or federal funds rate plus applicable margin or LIBOR plus
applicable margin would be subject to market conditions. Any changes in these
rates would affect the rate at which we could borrow funds under our credit
facility. A hypothetical 10% increase in interest rates on our variable rate
bank debt for a duration of one year would increase interest expense by an
immaterial amount.



                                       13
<PAGE>   16
                           PART II. OTHER INFORMATION


ITEM 6.  EXHIBITS

<TABLE>
<CAPTION>
Exhibit Number             Description of Exhibit
--------------             ----------------------
<S>                        <C>

27.1*                      Financial Data Schedule for the three months ended
                           March 31, 1999.
                           (for SEC use only)
</TABLE>

------------

* Previously filed with KNOLOGY Holdings, Inc.'s Form 10-Q for the quarter ended
  March 31, 1999.


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<PAGE>   17

                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, KNOLOGY
Holdings, Inc. has duly caused this Amendment No. 2 to KNOLOGY Holdings, Inc.'s
Form 10-Q for the quarter ended March 31, 1999 to be signed on its behalf by the
undersigned thereunto duly authorized.


                                         KNOLOGY Holdings, Inc.

        December 27, 1999              By: /s/ Rodger L. Johnson
                                       ----------------------------------------
                                       Rodger L. Johnson
                                       President and Chief Executive Officer



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