Covad

Covad, also known as Covad Communications Company or Covad Communications Group, was an American communications provider focused on broadband voice and data services. The company was founded in San Jose, California, and became one of the earliest providers to offer DSL broadband on a national basis in the United States. Its services targeted both businesses and telecommunications partners, combining connectivity products with voice, hosting, security, and managed-network capabilities. Covad's principal offering was DSL broadband delivered through local telephone infrastructure. It supplemented this core service with Voice over Internet Protocol, T1 connectivity, Internet Protocol services, dial-up access, Web hosting, managed security, and bundled voice-and-data packages. Covad sold directly to business customers and also supplied capacity and services through Internet service providers, carriers, value-added resellers, affinity groups, and partners such as EarthLink and Speakeasy. This wholesale and channel-oriented model allowed Covad to extend its reach beyond customers acquired under its own name. The company built a broad U.S. network footprint. Its broadband services were reported as available in 44 states and 235 metropolitan statistical areas, reaching a substantial share of American businesses. By the third quarter of 2006, Covad had approximately 530,000 subscribers and was described as the sixteenth-largest Internet service provider in the United States. These figures reflected the company's role during the expansion of DSL as an alternative to dial-up access and as a business-connectivity option alongside cable, T1, and other dedicated services. Covad continued to update its network as DSL technology developed. In 2008, it added Samsung AceMAP DSL access multiplexers to its existing Nokia D50 equipment. The change supported ADSL2+, with theoretical speeds of up to 15 megabits per second. The deployment was particularly associated with combined plain old telephone service and ADSL2+ packages supplied to EarthLink users, and it expanded into more residential areas even though Covad had traditionally emphasized business customers. The company also moved beyond conventional DSL. In 2010, it introduced Ethernet over Copper in the Los Angeles market, using a Fujitsu Flashwave-based Ethernet core and offering symmetrical speeds of up to 20 megabits per second. Ethernet over DS1 followed, and the service expansion was later planned for a broader national rollout under MegaPath. Covad's corporate identity changed through private-equity ownership and consolidation. Platinum Equity acquired the company in April 2008. In 2010, U.S. Venture Partners acquired Covad and announced a three-way combination of Covad, MegaPath, and Speakeasy. The combined business operated under the MegaPath name as a managed-services local exchange carrier. Former leaders from the three companies held senior roles in the merged organization, while Covad's former business and wholesale capabilities continued within the larger platform. Covad no longer operates as an independent brand. In January 2015, Global Capacity completed its acquisition of MegaPath's wholesale and direct-access business, including assets that MegaPath had obtained from Covad. The transaction further separated Covad's network and wholesale legacy from the original standalone company. The name Covad is therefore principally associated with the development of national DSL, channel-based business broadband, and the consolidation of independent telecommunications providers into managed-services platforms.

Covad emerged in the United States during the growth of DSL broadband as an alternative to dial-up Internet access and as a connectivity option for businesses. Based in San Jose, California, the company developed a model that combined its own broadband network with distribution through Internet service providers, telecommunications carriers, resellers, and other channel partners. It became notable as the first provider described as offering a national DSL broadband service. The company served business customers directly while also supplying wholesale and partner-branded services. Its portfolio included DSL, Voice over Internet Protocol, T1 access, Internet Protocol connectivity, Web hosting, managed security, dial-up, and bundled voice-and-data offerings. Partners mentioned in connection with its distribution model included EarthLink and Speakeasy. This approach positioned Covad not only as a retail service provider but also as infrastructure and access support for other communications businesses. Covad expanded its network across the United States. Its services were reported to cover 44 states and 235 metropolitan statistical areas, with availability extending to more than half of U.S. businesses. By the third quarter of 2006, the company had approximately 530,000 subscribers and ranked sixteenth among U.S. Internet service providers. Its growth reflected the increasing adoption of DSL for business access and for residential services supplied through partners. As DSL technology advanced, Covad upgraded its access equipment. In 2008, it added Samsung AceMAP DSLAMs to its established Nokia D50 platform. The equipment supported ADSL2+, capable of DSL rates of up to 15 megabits per second under stated conditions. The deployment was primarily intended to support combined plain old telephone service and ADSL2+ offerings for EarthLink users. It also brought Covad technology into more residential areas, broadening a network that had historically been concentrated on business connectivity. The company underwent significant ownership changes. Platinum Equity acquired Covad in April 2008. In 2010, U.S. Venture Partners acquired the business and announced a three-way merger involving Covad, MegaPath, and Speakeasy. The combination created a single managed-services local exchange carrier under the MegaPath name. Leadership in the resulting organization drew from all three predecessor companies: D. Craig Young became chairman and chief executive, Pat Bennett took responsibility for strategy and wholesale markets, and Bruce Chatterley led the business-markets unit. Covad also introduced newer transport products during this transition. In mid-2010, it launched Ethernet over Copper in Los Angeles. The service used a Fujitsu Flashwave-based Ethernet core and supported symmetrical speeds of up to 20 megabits per second. Ethernet over DS1 was added subsequently, and the organization announced plans to extend the services nationally by the end of 2012. These products represented a move beyond traditional DSL toward business-grade Ethernet access. After the MegaPath combination, Covad ceased to function as an independent corporate brand. In September 2014, Global Capacity announced plans to purchase MegaPath's wholesale and direct-access business, including assets originating from Covad. The transaction closed on January 1, 2015. Covad's later history is therefore tied to the transfer of its network and wholesale assets rather than to continued standalone operations. The name remains historically associated with national DSL, partner-delivered broadband, business communications, and the consolidation of independent U.S. telecom providers.

• 2015

  Global Capacity transaction closes

  [1]Covaden.wikipedia.org

  Global Capacity completed its acquisition of MegaPath's wholesale and direct-access business, including assets derived from Covad.

• 2010

  MegaPath merger

  [1]Covaden.wikipedia.org

  Covad was combined with MegaPath and Speakeasy under a new MegaPath organization backed by U.S. Venture Partners.

• 2010

  Ethernet-over-Copper launch

  [1]Covaden.wikipedia.org

  Covad launched Ethernet over Copper in Los Angeles with symmetrical service speeds of up to 20 megabits per second.

• 2008

  Platinum Equity acquisition

  [1]Covaden.wikipedia.org

  Platinum Equity acquired Covad as the company continued operating in broadband and business communications.

• 2008

  ADSL2+ equipment expansion

  [1]Covaden.wikipedia.org

  Covad added Samsung AceMAP DSLAM equipment to its Nokia D50 platform, enabling ADSL2+ deployments and broader combined voice-and-broadband service.

• 2006

  Covad reaches approximately 530,000 subscribers

  [1]Covaden.wikipedia.org

  By the third quarter, Covad was reported to have about 530,000 subscribers and to rank as the sixteenth-largest Internet service provider in the United States.

A business-oriented broadband and managed communications provider that combined DSL access with voice, data, hosting, security, and wholesale network services.

• Broadband Internet

  DSL broadband

  Covad's core service was DSL broadband delivered over copper telephone infrastructure. It supplied access to business customers and supported partner distribution through Internet service providers, carriers, and resellers. Covad became known for offering DSL on a national basis in the United States.

• Broadband Internet · 2008

  ADSL2+

  ADSL2+ was introduced through Samsung AceMAP DSL access equipment added to Covad's existing Nokia D50 platform. The technology supported stated DSL speeds of up to 15 megabits per second and enabled combined telephone and broadband packages, including services associated with EarthLink users.

• Business communications

  Voice over IP

  Covad provided Voice-over-IP services as part of its broader voice and data communications portfolio. VoIP could be combined with broadband and other managed services for business customers and distributed through partner channels.

• Business connectivity · 2010

  Ethernet over Copper

  Launched initially in the Los Angeles market, Ethernet over Copper used Covad's Fujitsu Flashwave-based Ethernet core to provide symmetrical business connectivity over copper facilities. The initial offering supported speeds of up to 20 megabits per second.

• Business connectivity · 2010

  Ethernet over DS1

  Ethernet over DS1 was added after Covad's Ethernet-over-Copper launch as another business access product. It formed part of the company's effort to extend its portfolio beyond conventional DSL and toward Ethernet-based services.

• Business connectivity

  T1 and IP services

  Covad offered T1 connectivity and related Internet Protocol services to businesses and communications partners. These products complemented DSL and provided an additional access option for organizations requiring established enterprise connectivity formats.

• Managed services

  Managed communications services

  The wider Covad portfolio included Web hosting, managed security, dial-up access, and bundled voice-and-data services. These offerings allowed the company to operate as more than a basic access provider and supported its role as a managed communications and wholesale-network supplier.

• 2015

  Transfer of Covad-related wholesale assets to Global CapacityM&A

  Background

  Following the MegaPath combination, Covad's legacy wholesale and direct-access capabilities were held within MegaPath.

  Action taken

  Global Capacity acquired MegaPath's wholesale and direct-access business, including assets that had originated with Covad.

  Aftermath

  The transaction further transferred Covad's network and wholesale legacy and confirmed that Covad no longer operated as a standalone brand.

  Source

• 2010

  Combine Covad, MegaPath, and SpeakeasyM&A

  Background

  U.S. Venture Partners sought to combine complementary broadband, communications, and managed-service businesses into a single managed-services local exchange carrier.

  Action taken

  Covad, MegaPath, and Speakeasy were merged and the resulting company operated under the MegaPath name.

  Aftermath

  Covad stopped operating as an independent company, while its wholesale, business-connectivity, and network capabilities became part of MegaPath.

  Source

• 2010

  Launch Ethernet over CopperProduct launch

  Background

  Covad aimed to extend its business connectivity portfolio beyond traditional DSL and offer higher-value Ethernet services.

  Action taken

  The company introduced Ethernet over Copper in Los Angeles using a Fujitsu Flashwave-based Ethernet core, followed by Ethernet over DS1.

  Aftermath

  The service was intended for broader national expansion under the MegaPath organization by the end of 2012.

  Source

• 2008

  Adopt Samsung AceMAP DSL equipmentOther

  Background

  Covad needed to expand its DSL technology beyond its existing Nokia D50 platform and support faster ADSL2+ services, including combined voice and broadband packages.

  Action taken

  The company added Samsung AceMAP DSLAMs and deployed them particularly for EarthLink-related services and in additional residential areas.

  Aftermath

  The move expanded Covad's technical portfolio and supported DSL speeds of up to 15 megabits per second under stated conditions.

  Source

1. 1Covaden.wikipedia.org