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COVAD
PURSUES DSL DIRECT SALES MODEL THROUGH BLUESTAR ACQUISITION
Covad Communications announced plans to offer direct DSL
services in certain cities through the acquisition of BlueStar
Communications, a DSL provider serving the southeastern US.
BlueStar currently has 250 COs in service, 150 of which
would be in addition to locations already served by Covad, and
approximately 2,000 subscribers.
BlueStar uses a direct sales model and has averaged
$240/month per subscriber line, compared to $79/month per
subscriber line for Covad. Covad
said that the direct sales model would add to profitability and
give it greater control over subscriber growth.
Covad plans to continue offering wholesale DSL to other
ISPs and service providers. As
a result of expected channel conflicts with some of its current
resellers, Covad's subscriber growth targets have been lowered to
245 K by the end of the year, versus earlier estimates of 300K. As
of the end of the last quarter, Covad has 100,000 subscriber lines
in service. The
acquisition would give Covad approximately 1800 COs, passing 40%
of American homes and 44% of businesses.
The merged company would is targeting 2,400 COs in service
by year-end. The deal
was valued at approximately $202 million, based on Thursday's
prices (COVD fell 27% on Friday).
http://www.covad.com/pr/pr_2000/061600_press.cfm
http://www.bluestar.net
Covad, June 18, 2000
- BlueStar's network is based on
Lucent/Ascend MultiDSL platform. Covad is a Cisco Powered
Network. Covad has also signed major DSL equipment
contracts with Nokia and Efficient Networks.
NETWORK
PLUS ACQUIRES FIBER ACROSS NEW ENGLAND
Network Plus, an integrated communications provider, will
acquire up to 8,000 fiber miles throughout the New England region
from NEES Communications (NEESCom), a public utility holding
company. The 20-year
agreement for multiple SONET rings will enable Network Plus to add
129 collocations to its network over the next 18 months.
Among its offerings, Network Plus is deploying Voice
over DSL (VoDSL) services for small-medium sized businesses.
NEESCom is owned by National Grid USA, a subsidiary
of the National Grid Group plc (UK).
http://www.np1.com
Network Plus, June
16, 2000
EXCITE@HOME
AND JUPITER TELECOMMUNICATIONS LAUNCH CABLE SERVICE IN JAPAN
Jupiter Telecommunications (the largest Japanese cable
company), Excite@Home and Sumitomo launched broadband services in
the Tokyo metropolitan area and northern Kyushu.
@Home Japan's network footprint covers 5.1 million homes,
representing more than 10% of all Japanese households.
http://www.home.net
Excite@Home, June 19, 2000
ERICSSON
FORMS ITS OWN START-UP INCUBATOR
Ericsson formed a new business unit to develop ideas from
entrepreneurs inside the company into successful spin-offs.
Ericsson Business Innovation AB initially will target three
areas: high-speed
residential Internet connections (including fiber to the homes),
content aggregation and next-generation automotive communications.
Ericsson has already given its backing to twelve three
companies, including Wireless Car AB (a joint venture with Volvo
and Telia), Connect Things Inc. (bar code technology for Internet)
and Terraplay Systems AB (a company that produces systems for
high-speed, Internet-based multi-player game-playing).
http://www.ericsson.se/pressroom/20000616-0097.html
Ericsson, June 16,
2000
EMPERATIVE
RAISES $20 MILLION FOR SERVICE PROVISIONING PLATFORM
Emperative received $20 million in second round financing
to support its development of broadband service activation
equipment.
The company's recently introduced provisioning system is
designed to bridge front-office systems, application servers and
the network. Investors
include Pequot Capital, Kettle Partners, Boston University,
Greylock and Pilot House Ventures.
http://www.emperative.com
Emperative, June 19, 2000
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