Covad Files For Bankruptcy Protection

Posted by ryuzaki0 on Sunday August 19, 2001 @12:35AM from the spread-too-thin dept.

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.

1 of 182 comments (clear)

Min score:

Reason:

Sort:

Regulation is not the answer by iamklerck · 2001-08-19 01:03 · Score: 3, Offtopic

While there are indeed many problems in the US broadband market, regulation simply is not the answer. Government regulation and subsidizing of telephone is what got us into this mess in the first place. Government is the same reason we haven't seen any kind of advance in non-portable telephone technology almost since its invention.

The real solution to the problem is a completely open and free market. Let the consumers and the market dictate the answer. Whatever you do, though, keep the government out of it.