Covad Files For Bankruptcy Protection

xnuandax writes: "Well, it's finally happened, DSL provider Covad Communications has buckled under its post-tech-bubble debt load and filed for Chapter 11 (See this c|net article). While this doesn't mean that Covad is turning off the lights on its 330,000+ customers, things are not looking so rosy for the last competitive (non-Bell) DSL provider left standing. Seems that the USA is setting herself up for a broadband cartel (of Baby Bells) that's going to make OPEC look like a poster child of free market competition." The announcement is from earlier this week, but they've been acting bankrupt for a while. Just like with Loki though, this doesn't mean they're out of business, at least not yet.

Comments

Time for Bush admin to step up to the plate

[revscat]

Well, everyone says that the Pres. Bush administration is married to big money interests. Now would be a perfect time to prove all those people wrong. If Pres. Bush can get the FCC and/or Congress to rework the Telecommunications Act of 1996 to reflect the current situation of the telecom market (namely that long distance is no longer an attractive market), he could prove himself to be an astute leader and someone who is truly dedicated to free market principles, not someone who is dedicated to campaign contributors.

I doubt it will happen, but I'm hopeful.

Re:Time for Bush admin to step up to the plate

[Cramer]

Face facts, some things simply are monopolies -- the "natural monopoly". We call them utilities and regulate them. Grocery stores don't present a conciderable infrastructure like a water company or power company.

How would you like having nine (9) local water companies competing for business? Each one will have to bury their own water mains and distribution lines. In the process, they will certainly end up screwing things up -- cutting people's water lines, cutting through distribution lines, etc.

How would you suggest we deal with this mess? Have the government install and manage the utilities infrastructure? Oh, that'd be funny.

The phone companies are smart.

[Perianwyr Stormcrow]

The fines for their anti-competitive practices appear to be far less than what they stand to gain in the future if they destroy all competition...

One would almost think that things were engineered this way from the beginning.

Everyone who I've talked to who has gotten DSL service from anyone other than the phone company has related a tale of delays and ball-dropping by the phone company... which are believable, since they are the ones with the incentive to do so! If Covad provides bad service, it will drive them out of the market. If the phone company provides bad service... well, isn't that what phone companies are known for?

All in all, it makes me wonder if the last mile shouldn't be a truly public utility, with all companies at an equal footing outside of it.