NorthPoint, Rhythms and Covad Communications (COVD) are all considered to be competitive local exchange carriers, or CLECs, that offer DSL service to resellers such as EarthLink (ELNK), which then sell the service to consumers and businesses. The DSL market as a whole has been on a slide for most of the last year, due in part to competition from the "Baby Bells" such as Verizon and SBC Communications (SBC).
And like NorthPoint, Rhythms and Covad have seen their market capitalizations crumble. Rhythms traded today down 13 percent, or 28 cents, at $1.91. The stock has lost 96 percent in value since hitting a 52-week high of $50 on Feb. 15, 2000. Covad, which laid off 400 people and changed chief executive officers late last year, was down 7.8 percent, or 25 cents a share, at $2.97 -- a 96 percent drop from its 52-week high of $66.67 on March 1, 2000.
"They all seem to be in the same boat," Lancaster said. "And part of its is because the Bells sell directly to the consumer." |
