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

Ahh adsl.

[rash]

I like my 2.5Mbit adsl connection :)

mmmmm 25$ month.......

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

[Brento]

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)

Huh? What's the long distance market have to do with an ISP like Covad? And call me crazy, but long distance is at least attractive enough that I still get constant spam wanting me to switch my long distance company to someone else. At the same time, I never see that constant spam for changing ISP's (from anybody other than AOL, of course).

The government should have nothing to do with bailing out companies that invested too much in tech with the wrong ideas in mind. It's one thing to bail out monsters like Chrysler or Continental, because they employ tens of thousands of American workers. It's entirely another thing to rework federal law simply because yet another dot-com servicer went belly-up.