TelePacifics Covad Buy Said to Benefit Agents

CHANNEL PARTNERS
TelePacific Communications (Booth #1401 at the Channel Partners Conference & Expo) says its plans to buy Covad Wireless are proceeding, and when the deal closes it will bring many positive benefits for agents who participate in TelePacifics Telepartner program.

We are very excited about the prospect of integrating the Covad Wireless fixed wireless footprint to support our portfolio of broadband access services, because it will greatly enhance our network coverage, enabling us to reach more customers with higher speeds and more affordable bandwidth within our major markets in California and Nevada,” said David Zahn, vice president of marketing at TelePacific.

TelePacific said it will pick up roughly 3,500 broadband fixed wireless business customers in California, Nevada and suburban Chicago. Financial terms were not disclosed, but TelePacific did say the transaction included an all-cash purchase of capital stock.”

The fixed wireless network supports higher bandwidths using LMDS and point-to-point microwave technologies that will allow agents with larger enterprise customers to connect customer sites requiring up to 45Mbps using LMDS and up to 100Mbps using microwave. Such higher bandwidth services can result in higher commission levels for the sales agents.

In addition, since wireless broadband services do not require leased last-mile circuits from the ILEC, services can be turned up in much shorter time frames when necessary.

Going forward,” Zahn added, we are looking at planned WiMAX upgrades that will increase the available bandwidth rate and reach, while providing the QoS needed to support real-time services.  That will be a win-win solution for TelePacific and its Telepartners.”

TelePacific expects the deal to close by the second quarter of 2011 following customary closing conditions, including federal regulatory approvals.