COVAD DSL provider shuts down DSL Networks
02/08/2001 6:45:00 PM MST Albuquerque, Nm
By Dustin D. Brand; Owner AMO
Covad Communications gives DSL Networks an uppercut.
Covad Communications (Nasdaq: COVD) is one of the few DSL companies still around. A bit over a month ago, the wear and tear of Covad being a DSL wholesaler started to show. Covad cut 400 Employees, and later more. One problem that plagued Covad was their initial investment in DSLAMS, or Digital Subscriber Line Access Multiplexors which need to be installed into the Central Office of your Local Phone Companies in order to provide you with the DSL Service. Aside from this
initial investment, some of Covads' DSL resellers weren't paying their bills, and they were shut down. While it is not yet evident that on February 7th, 2001, Covad shut down DSL Networks for not paying their bills, Covad did shut down DSL Networks Covad subscribers.
1 theory that did surface in my investigation into this matter was from a DSL Networks technician on the morning of the 9th. I'll call him John Doe for now. He told me that on the 8th (at about 1 am my time) he had no idea what was going on, and thought that Covad had a major outage. This would infer that Covad was in on the secrecy, because they would have to lie, and tell DSL Networks that all their lines were down. I do not think this was the case, even though I do not blame the Technicians at DSL Networks, because they are supposed to do what their company tells them to, even if it is to lie to their customers. The theory I have suggests that because
DSL Networks was planning on moving all their customers to Rhythms DSL, and planning on dropping Covad alltogether, the negotiations with Covad to have their lines up for several more months, and Covad ended by terminating their lines to DSL Networks, and Covad did so legally.
For DSL Networks to be caught up in such a bad area is horrible. For DSL Networks to lie to their customers, no matter how valued they are supposed to be is verging on illegal business practices. Yes, illegal business practices, literally. Covad shut down DSL Networks legally, and DSL Networks lied to their customers about this illegally.
For current DSL Networks Covad customers, DSL Networks is switching you to Rhythms DSL, and that will take 2-3 weeks. In the mean time, DSL Networks is supplying you with FREE Dial-Up Accounts. If you're smart, you'll get out of your contract with DSL Networks now, legally. DSL Networks cannot hold you to anything in their contract now, because of the special circumstances, and this may indeed lead to a Chapter 11 filing from DSL Networks. DSL Networks has already fired a good portion of their staff.
If you do happen to be a DSL Networks customer, and are going through Covad, chances are you aren't even reading this, and you probably already canceled your contract with them. Good Job. If you happen to read this with your "FREE" Dial-Up account, cancel your service with DSL Networks now, not later, and contact your local Better Business Bureau or State Attorney General for help if you need it.
DSL is still a viable option for high speed internet access. The question is, are you going to be resold DSL access from someone like Covad, Telocity, Northpoint, Rhythms, or are you going to get your DSL directly from your local phone company. I would suggest the latter, get your DSL from your local phone company, who isn't going to disappear, and most importantly isn't going to flip a switch terminating you. If you happen to have Cable Modem service in your area, by all means get that if you don't want to mess with the DSL hell that many before me have spoken of.
DSL Networks, Inc
Covad Communications, Inc