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story category Covad Nudging Way Into Wireless
Purchases Chicago Wimax provider
(old news - 09:39AM Wednesday Oct 11 2006)
tags: dsl · business · wireless · clec
According to the Chicago Tribune and a company press release, Covad has shelled out $1.4 million to buy DataFlo Communications, in order to eventually offer Wimax wireless broadband service in the Chicago area. Back in February, Covad completed its purchase of NextWeb, California’s largest fixed-wireless broadband provider for businesses.

While Covad is pushing into wireless alternatives and expanding their ADSL2+ network, the company has been losing traditional landline DSL customers each quarter, and investors remain unimpressed with the CLEC's prospects, as evident by their consistently static stock price.

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Forums » Covad Nudging Way Into Wireless
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Post a:

Jon
Premium
join:2001-01-20
Lisle, IL

losing traditional landline DSL customers cause

they're too damn expensive.
I used covad for a few years and was very happy but switched to SBC cause it was $35 a month cheaper.

Great service, Lousy prices...

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Clec business has been dead since the .com bust

Clecs have been a dying business ever since the dotcom bust in 2000 and Covad has been part of that. And that business isn't coming back. Getting into wireless in general and Wimax in particular may be their last chance.


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usarules

@dataflo.net

Re: Clec business has been dead since the .com bust

They should make a few $$ of this,
we have Data flo, it's $99 per month, and we have no other options here in wood dale , il

for business broadband.

kapil
The Kapil

join:2000-04-26
Chicago, IL

Re: Clec business has been dead since the .com bust

Yes you do. It's called a T1. Stop being cheap.

kamm

join:2001-02-14
Brooklyn, NY
·Packet8

Re: Clec business has been dead since the .com bust

said by kapil See Profile :

Yes you do. It's called a T1. Stop being cheap.
Stop being so smart - there are several places where T1 is not available.
shashinka

join:2000-09-16
West Boylston, MA
·Verizon Online DSL
·Charter Pipeline

The CLEC i worked for, Conversent Communications, has been doing very well as an alternative for Business, higher quality and more experienced support. CTC and choice one in the northeast just merged together with them to form One Communications. Glad to see alternatives.
Avanti20

join:2006-03-21
Rochester, NY

Re: Clec business has been dead since the .com bust

Choice One is HQ'd here in Rochester NY, and they are by far the worst provider. They are hemorging customers as soon as the 3-5yr Agreements come due. Absolutely horrible service, and embarasing reliability.

rachelsfx

join:2004-09-27
Pensacola, FL
Covad has been bankrupt once. I'm sure it will be again.

I agree their prices are ridiculously high. Double in price to BellSouth I know. "But you get 5 static IPs!" Ummm, so?
Avanti20

join:2006-03-21
Rochester, NY

Re: Clec business has been dead since the .com bust

Covad is interested in T1, VoIP, and High End SDSL products. ADSL isn't something that they're pushing. Go to Bell South, and order an SDSL line, it will be a resold line provided through COVAD. COVAD is targeting business' that want and need more than an ADSL line can provide. Most SDSL in this country comes through Covad whether directly or through a reseller. There is no need to target homes, and VSB's if you're looking for business' with more than 10 users.

burgermeister
All Computers Are Junk

join:2000-10-23
Utica, MI

You don't have to go through Covad to get a Covad circuit. If you get the lower cost Earthlink (or any other Covad partner), you'll get a Covad line for around 30 bucks a month.

Also, if you buy from Covad.net, it's a business class service. I don't even think you can buy residential class service directly from Covad now.

Covad.net is an very small part of their business. They wholesale the majority of their DSL business to partners.

Covad.net is not set up to compete against their bigger wholesale customers, per se. The services Covad.net offers are generally a bit different and focus on business customers.
--
"I've learned that depression is merely anger without enthusiasm."

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:
·Speakeasy

Not just wireless...
A company I work with had a contract with a CLEC for their phone and data service. It just expired so I priced around. Covad had the best deal with their 'CEIA' (dynamic T1) product. The install is underway...

Small business phone and data service is a huge market, especially as the advantages of virtual PBX environments are realized.

Of course, there's a lot of competition in that space as well...and the T1s used to bring those services are still running on ILEC lines, but it's surely a more profitable product than residential DSL.
KM
--
Don't Lie - Be Kind - Realize your Potential

patrickbennet

@76.210.x.x
Covad has had its problems, much of it regulatory, but it is about to turn cash-flow positive (4q 06). They have nearly $100 million in cash. I don't see another bankruptcy in the cards.
vavoiper

join:2005-03-08
Falls Church, VA

Re: Clec business has been dead since the .com bust

Yes, but will they ever be able to grow their revenues more than 5% per year? That's the reason (along with your regulatory point) for their anemic stock price.
Forums » Covad Nudging Way Into Wireless


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