Covad’s future?

Covad is finally getting its groove on. Naked DSL combined with its VoIP packages, it can be a true competitive threat albeit a small one to the large players. ZDNet/ take a look at company’s chances in the long term in this freakishly long article. So far it has leveraged line-sharing and built up a business to emerge from bankruptcy. But the future is not assured, according to the experts quoted in the story. “Covad, like any company focused on copper, has no long-term future in North America,” said Albert Lin, an analyst at American Technology Research. “If you’re not a (Baby Bell), I can’t see how you could construct any business model that works.” I think since Covad is not dependent on UNE-P, and have built their own central office infrastructure, they are in good position to survive. It is going to be tough, but there are two options for the company – stay wholesale and at the same time offer services like VoIP. “VoIP is a big opportunity,” Covad’s Charlie Hoffman said. “We own our own network, so we’re not reselling someone else’s network.” Either way, I still think Covad is a company to watch – an independent who can out hustle the bells, or as yet another victim of bumbling FCC and Bell monopoly!

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