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Et Tu Covad? 260 Central Offices To Close

Posted by ryuzaki0 on from the back-to-pigeons dept.

Mr. Haplo writes: "It seems that Northpoint isn't the only CLEC going through troubled times, these days. According to this article, Covad Communications is planning on closing 260 central offices. This bodes not well for those of us trying to avoid the stranglehold of the ILECs."

1 of 127 comments (clear)

  1. Paring down losses on Bluestar by isdnip · · Score: 5
    Covad bought Bluestar last year. Bad move. They're now mostly closing down much of what they bought from Bluestar, and considering a write-down of the whole purchase. Bluestar did retail DSL+ISP while Covad was primarily wholesale DSL to ISPs. The combination made Covad a competitor of their customers. Bad move. Plus their customers (ISPs) have been, uh, slow to pay.

    Covad doesn't compete much with cable modems or cheap consumer DSL. Their main business is SDSL to business. Rather oversaturated; several CLECs (not usually ILECs) sell in that space, and there's not enough business to go around. Covad might end up the survivor though.