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North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical Re: Covad, Chapter 11 !
On Wed, 8 Aug 2001 [email protected] wrote: > On Wed, 08 Aug 2001 10:42:30 EDT, Mitch Halmu said: > > > That nicely completes the BK suite: NorthPoint, Rhythms, Covad. > > DSL now in firm control of the ILECs, competition crushed. > > I've seen several references to Covad's business unit that does DSL > continuing normal operations - it's the parent company that's reorganizing. > > If they *do* make a good stock-for-debt swap, they may come out in a much > *more* competitive position. How would YOUR balance sheets look if you > suddenly had $160M/year more to play with? > > In today's business climate, I'd *worry* if my competitor went Chapter 11 > with a good clear reorganization plan (as opposed to a liquidation plan). Ownership of the C/O and the last mile confers ILECs an unfair advantage in this business. While they have set up separate companies for Internet access, they still benefit from moving funds from one pocket to another, within the same conglomerate. No independent company can realistically have a fair shot at competing in this environment, as demonstrated by the string of bankruptcies we just witnessed. --Mitch NetSide
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