Why did I get into this mess in the first place ?
It don't know what you mean by this mess. What was your entry point? Help put it into perspective.
what the heck does COVD do ? Do they just install DSL in people's home(s) (& I assume some biz too) ?
In the beginning, it was a rush into install a netowork that would capture large amount of the market share. COVD has installed their equipment in 2000 of the 3000 central offices, allowing them to reach over 45% of all homes/businesses. The provide the access to the DSL network that they hav built, that was their original purpose, and now, with the addition of the Sony news, they will do much more. DSL Broadband delivery and access is the basis for their business.
As far as the rest of your questions, let me sum it up. COVD is partnered with some major phone companies and does share some of their business. It appears that Verizon is their major competitor, since they use NPNT (which was bought by them). SBC is also a major competitor, BUT SBC has agreements with COVD, so COVD lines/services tend to be shared and overlap with SBC. RTHMs and NPNT were the two companies that matched the COVD business model, but one was bought and the other has not grown as fast. Neither RTHM or COVD have branced out overseas (japan), as far as I know of, lke COVD has with NTT.
Bottom line, whether your a phone company, or ISP, you need one of several networks to run DSL...COVD is one of them (the nations largest). COVD, unlike RTHM or NPNT has their own direct ISP service as well, purchased earlier this year. You can get service from them directly, but most Major ISPs you contact, minus Verizon, you will see COVD as their primary provider, or at least their secondary. Its really a three way business, the ISP, COVD in the middle then the phone company. The slow part of the roll out process has been the connection for COVD to get the phone compnay to install a dedicated line, like I have, but since line sharing has rolled out more frequently, the time delay has decreased, allowing faster DSL service installs. DSLs only downside is distance to the Central Office, limiting their overall market potential, but realistically, any area with a good size population is close enough for DSL. And then there is the new business plan for COVD regarding agreements with some major corporations, and connecting other products to the net for broadband access.....stay tuned, its going to be an interesting new year to say the least. I look for a slight slow down of installs, being more picking with who they install and with which ISP, which will save expenses, absorbing some of the customers of the delinquent ISPs, growth in the Asian markets (more revenue), and this new Corporate service they are targeting (again more revenue. The excessive spending should slow down throughout 2001, and if they are not bought, they should produce positive earnings in 2002.
Of course if DSL does not become the mainstream like the 56K modem, or at least does not capture a good share of the broadband market, then there is not much hope. I think, and again enlightened by a recent Business Week article, that DSL will shake out the naysayers in the next 6 months and prove its grip on what internet users (especially businesses) want and will need. |
