The Chatter is that 2 CLECs are Combining

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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

The Chatter is that 2 CLECs are Combining

Chatter on Atlanta Biz Journal and on stock boards is that Cbeyond is prepping for a sale. The last month has seen many CLEC jobs get axed - 100 at Cbeyond, 400 at EarthLink and a bunch at XO. Also, CBEY fired a banker -- that's always a sign of M&A. (The only signal they didn't give was to hire Andy for PR.)

ABJ is saying that MegaPath is the buyer. Cbeyond's Jeff Uphues was in California with other company execs last week - and MegaPath's President didn't make it to ITEXPO in Miami Beach.

This combo would make sense since it would just beef up what MegaPath already does (has). It would put about 60K more customers in the MegaPath bucket. Cbeyond's shift to Broadsoft from the Aretta Asterisk containers puts it inline with MegaPath, which also pays the Broadsoft licensing vig. Both chase the same customers with similar products in the same cities. MegaPath would gain some Microsoft experience with the buy. And the CBEY founders and VCs could cash all the way out.

The downside would be the job losses and the integration. MegaPath lost a lot of ground and time integrating Covad-Speakeasy-MegaPath systems together.

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