MegaPath + Covad = Good Stuff (for agents)?

Posted 4/9/10 
By Dan Baldwin, TA Executive Director, 951-251-5155 email 

There's not a lot of merger activity going on in the telecom agent and channel partner industry so when two companies we think we know pretty well decide to combine forces it's a pretty interesting deal. When I saw that MegaPath and Covad, two TA vendor members, were merging I said to myself, "Wow" quickly followed by "I wonder why?"

I'll be the first to admit that while I have a business degree from a real college, I'm no mergers and acquisitions wizard. I do own my own business though and outside of making my clients happy I pretty much just think of two things all day long, "How can I cut costs or increase revenue?".

I imagine most business owners think the same way so I applied that thinking to MegaPath & Covad. In reading through the press releases on the subject, I drew the conclusion that Covad was the network of choice that Covad put a lot of their customers on to them provide all the MegaPath managed solutions. By merging with Covad are they going to really going to lower their wholesale costs all that much? What do they get by "owning Coved" that they didn't already have?  "Fewer network options and more headaches", I initially thought. Why buy a car when you can drive the one you like whenever you want anyway, right?

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Filed under MegaPath  CLEC