A DSL headscratcher

Covad has acquired 23,000 Qwest out-of-region business DSL customers in a deal that one analyst says is a loser all the way around. Covad begs to differ, saying it will lead to “significant inorganic growth.” Covad is also excusing $8.8 million in Qwest financial commitments as part of this deal. But is Covad actually buying back existing customers it served on a wholesale basis? And can Covad, which lost $34.7 million on first-quarter revenue of $90.9 million, afford this deal? Read and let your mind ponder…  http://www.nwfusion.com/edge/news/2003/0612covad.html

Covad has acquired 23,000 Qwest out-of-region business DSL customers in a deal that one analyst says is a loser all the way around. Covad begs to differ, saying it will lead to “significant inorganic growth.” Covad is also excusing $8.8 million in Qwest financial commitments as part of this deal. But is Covad actually buying back existing customers it served on a wholesale basis? And can Covad, which lost $34.7 million on first-quarter revenue of $90.9 million, afford this deal? Read and let your mind ponder… (Read the story )

Verizon is now offering small and midsize business a channelized T-1 service with which to bundle local, long-distnace, data and Internet access service. The new Integrated Access service is targeted at business DSL customers exhausting the limits of that service. With Integrated Access, Verizon is offering a discount of 5% to 10% on monthly rates for high-speed dedicated Internet access from Verizon Online. Speeds range from 128K bit/sec to 768K bit/sec, depending on the location. Verizon is also offering long-distance rates of 3.7 cents per minute for direct-dialed, state-to-state calls, depending on term and volume commitments. The previous low was 5 or 6 cents per minute. (Read the story )

SBC is now offering managed Wi-Fi wireless LAN services to schools and hospitals. The new services support wireless phones and wireless data connectivity on a single network within SBC’s 13-state territory. SBC says more than 110,000 public schools combined spend about $500 million per year on wireless technologies, but that is expected to quadruple by next year. U.S. hospitals will spend nearly $295 million on wireless LAN technologies by 2005, the carrier says. (Read the story)