Carli5
join:2001-05-29
Sacramento, CA | reply to hoff
Re: Nail in the Cofffin?!?
Not if cable access is not available.
If Covad folds, I WILL have to use PacBell for DSL service. |
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Carli5
join:2001-05-29
Sacramento, CA | reply to hoff
Not if cable access is not available. |
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Anon |  reply to srauvers
They did no such thing. Sheesh! Glad you are not on a jury! It took nothing but an accusation by ambulance chasers to make you judge them guilty. read the post before yours, it was on the money. |
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srauvers
join:2001-01-07
Los Angeles, CA
| reply to hernang7542
They broke a major securities law and they should be punished for what they did.
Covad has to take responsibilty for their actions, a sentiment that is sorely lacking in many DSL ISP's.
Maybe this will set an example for the rest of the industry to shape up or ship out.
I have speakeasy for DSL and I know they use Covad, however; when Covad committed this act, everybody is going to pay for what they did.
Have a nice day.
Scott
Los Angeles, CA |
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boogie74
join:2001-06-19
Neenah, WI
clubs:
| reply to NGNnow
said by NGNnow:
Cable modem monopolies vs. ILEC DSL is COMPETITION? Boy, if that is the case, we are in BIG trouble. Cable and telephone monopolies have unofficial, wink-&-a-nod gentlemen agreements to not tread on each others revenue streams. And current cable modem technology is crap, as people will find out as these DOCSIS systems start to really become loaded with users. It is a dark future if no one is left standing to challenge the monopolies.
Please back this claim up. It is ludicrous to make a claim such as the "wink and nod" agreements between competing companies based on the fact that there are SOME markets that don't have the two going head on.
AOL/Time Warner Cable for instance offers Roadrunner in multiple markets in the midwest where Ameritech also offers DSL. This is just one example. There would be too much cost associated with aligning marketing plans to NOT offer service in one area based on the markets of a totally different company. One might as well say that Burger King has an agreement with McDonalds that they won't be within 10 blocks of each other in certain cities so that people won't have a choice in fast food.
michael74 |
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NGNnow
@66.37.x.x
| reply to hoff
Cable modem monopolies vs. ILEC DSL is COMPETITION? Boy, if that is the case, we are in BIG trouble. Cable and telephone monopolies have unofficial, wink-&-a-nod gentlemen agreements to not tread on each others revenue streams. And current cable modem technology is crap, as people will find out as these DOCSIS systems start to really become loaded with users. It is a dark future if no one is left standing to challenge the monopolies. |
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Anon | reply to hernang7542
This isn't news. This is just one in a series of class action lawsuits that were filed by different law firms for the same issue. Some of you might remember that approximately 6-10 were filed within a two-week period back in November.
Covad attorneys I'm sure are already working those cases, so the cost of adding another suit will be minimal if any, and isn't going to add to current operating costs. That doesn't mean this is a good thing, it just means that it won't cost anymore money. Keep in mind that this case and all of the others won't conclude for years. If Covad has to pay, it will be well down the road, so don't expect this to be the catalyst that drives Covad out of business immediately.
They claim that at their current burn rate, cash on hand is can carry them through July 2002. If you look at their Q1 income statement, this account is true. They had enough cash at the end of March to carry them a little over 5 quarters, given their current quarterly cash expenses.
I suspect that they'll attempt to secure funding or seek purchase through the middle of May 2002. By then, their Q1 2002 earnings should have been out for a few weeks, and their next one wouldn't be until July 2002, the point at which all money will have run out. If their earnings improvements don't attract offers by the middle of May 2002, bankruptcy is imminent.
Even if they have to declare bankruptcy, the cash is still there to fund their network through July 2002. If you have Covad DSL, it will be about a year before they liquidate their network, if it happens at all, so don't think that you have to find a new provider immediately. Also, with the lessons learned from the NP debacle, I expect that end-users will be converted in a more expeditious manner, and those who can't be converted will at least be given a little more forewarning. No one expected Northpoint's sudden end, but people are closely watching Covad. |
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hoff
@38.204.x.x | reply to Anon
Actually the ILECs will still have competition in the form of high speed cable access. Just depends on which aspect of the competing technologies consumers deem important. |
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hernang7542
Helpless In The Face Of Your Beauty
Premium
join:2001-04-25
Wilmington, DE
clubs: 
|  reply to basshive
In an ideal world (from Covad's perspective), they might come out victorious, but they're real enemy in this situation is time. Nothing drains funds quicker than a big, fat, juicy lawsuit that eats up lots of resources. If Covad was financially "stable", they could survive this with enough time and lawyers, but given their dilemma with just enough money to keep operating until 1st or 2nd quarter of 2002...
Just don't see how they can keep running and pay for all the litigation at the same time. Brace youreselves for a Chapter 11 announcement in the very near future if the courts allow the suit to go forward.
--
"All Sunshine and No Rain makes a Desert" -- Old Arab Proverb |
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richb01803
Rich
join:2001-02-14
02100
| reply to basshive
Can't swing a dead cat without hitting an attorney
Yawn. Every company has plenty of problems, both common and unusual, day after day.
The entire technology industry has been pursued by time-wasting ambulance-chasing lawyers ever since the Nasdaq started to go south more than a year ago.
Lawyers pestering management is a very common problem and it won't change a thing. If Covad was going to succeed before, it has just as much of a chance as it ever did; if it was doomed to failure, then this won't hasten their demise any faster. |
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basshive
True-Playaz
join:2001-02-26
Waterford, WI
| reply to hernang7542
Re: Nail in the Cofffin?!?
We are far from the end here. While this lawsuit certainly has the potential for great harm, it has the potential for great good as well. Covad *COULD* emerge victorious and this could spark a turn around for them. Almost every company in their position faces this sort of thing thanks to the money hungry snobs who don't even understand the technology they so blindly invested in.
We have not heard the last from Covad and while everyone is kicking them Im sure they are quietly continuing to go about business and keep things working.
All of you people saying run run are doing nothing but making things worse. If we all ran then what would be the point of Covad being in business? Running is not and never has been the solution. If anything they need more not less.
--
..::drum and bass cannot be stopped::.. |
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Anon | reply to hernang7542
Run?
And go to where? Rhythms?
If Covad goes down we're going to wind up at the sole mercy of the ILECs. |
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hernang7542
Helpless In The Face Of Your Beauty
Premium
join:2001-04-25
Wilmington, DE
clubs:
| At a time when Covad is struggling for every last penny to stay in business, a class-action suit could bury them. I pity myself for not having DSL available to me, but I pity the poor folks more who rely on Covad for the connections they do have.
Run! Run while you still can! Save yourselves!
--
"All Sunshine and No Rain makes a Desert" -- Old Arab Proverb |
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