By wrapping up its acquisition of MegaPath's NextWeb wireless subsidiary Covad Wireless, TelePacific will have yet another weapon in its product arsenal to target new and existing customers that want a pure wireless-based solution or a complementary backup element for their wireline network service.
Through its acquisition of the NextWeb assets, TelePacific not only gains a fixed broadband wireless network consisting of WiMAX broadband, but also a licensed backhaul network and a LMDS-based network with 3,500 customers in California, Nevada and the Chicago area.
New and existing TelePacific customers will be able access upload and download speeds of up to 100 Mbps in addition to new redundancy options for their existing wireline-based connections. For customers that need rapid installation, broadband wireless connections are ideal because they don't require TelePacific to purchase carrier loops from the ILEC to get a service up and running.
Similar to the vision it has with its mobile service set, TelePacific can position the broadband wireless assets as a possible disaster recovery/continuity of operations option for its existing wireline-based service customers. If a wireline Ethernet connection fails, for example, TelePacific could then reroute the data over a broadband wireless link to maintain uptime without any disruption.
Following CenturyLink's much expected closing of its merger with Qwest and EarthLink's deal to acquire CLEC One Communications, TelePacific's completion of its acquisition of MegaPath's NextWeb subsidiary Covad Wireless caps off what has been a busy week for telecom service provider M&A.
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