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Summary:

Hampton C. Adams III, IRG Research Senior Analyst believes that Covad’s future hinges closely on VoIP and if all goes to plan, then the company could end up with about $150 million in VoIP related revenues alone. Covad had entered the VoIP business via an acquisition. […]

Hampton C. Adams III, IRG Research Senior Analyst believes that Covad’s future hinges closely on VoIP and if all goes to plan, then the company could end up with about $150 million in VoIP related revenues alone. Covad had entered the VoIP business via an acquisition. It bought GoBeam for about $48 million last year. The next big move will be offering more voice services. In his report, Adams notes that the WiMAX trials in the Bay Area are going well, and expects the company to launch it commercially towards end of 2005. Nothing new, except, he comes up with some hard data related to VoIP. Still Covad will be buzzword compliant – broadband, voice, VoIP and WiMAX – by end of the year, and that should add some sizzle to its stock. It needs it – the stock has been meandering for a while. Many feel that with AT&T ending up in the arms of SBC and MCI going to Verizon/Qwest, the wholesale DSL business might be in for a rude awakening.

  1. Wholesale DSL already has had a rude awakening for anyone who isnt a RBOC. Anyone who isn’t huge like Earthlink/AOL are able to buffer some of the blow but everyone else is just getting screwed left and right by anti-competitive pricing practices from the RBOCs.

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  2. you are right about that. even earthlink is having issues so to speak and its only going to get worse

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