Covad Acquiring MegaPath

March 31, 2010

Covad announced a merger with MegaPath today. That combines 2 of the 3 independent DSL transport players in the Industry. (The third would be EarthLink's New Edge Networks). Interestingly, MegaPath is a Covad customer. The combined entity will be owned by Platinum Equity and Megapath investors, and have a footprint of 4400 Central Offices in the US.
More here. The Covad press release here.

UPDATE: When I heard this announcement today, I had to smile: "Someone listens!" I think they just need to grab NEN and make it the holy trinity of SMB Wireline Broadband.

These companies already wholesale DSL to the ILEC's and to some CLEC's (like XO). Creating one entity - eliminating any duplication - with a complete database of facilities means that sales can increase. Why would they increase? One stop shopping. Makes it easy for agents, partners, and businesses.

Master Agencies won't have to choose among the 3 DSL providers. Hopefully, the best of both companies will be kept - like the way that MegaPath handles Channel. (Again Congrats to Dan Foster for his Channel Chief accolades).

VoIP Providers should be able to leverage this union as well, since they need transport with Quality of Service. With 4400 CO's, that's a good amount of coverage. The merger news will be good advertising for the company and maybe alert a few ITSP's that there is a Nationwide Broadband player that will work with them. We'll see. Hopefully, in Oct. at ITEXPO in LA.

Covad Acquiring MegaPath

On Rad's Radar?

Covad Acquiring MegaPath