TelePacific strikes deal to acquire MegaPath's fixed wireless business

TelePacific believes the best way to the SMB customer's heart is by giving them various options, and the CLEC is adding yet another option by purchasing MegaPath's fixed wireless business.

By acquiring MegaPath's Covad Wireless subsidiary, TelePacific will immediately add 3,500 profitable broadband fixed wireless business customers in California, Nevada and suburban Chicago.

Under the terms of the agreement, TelePacific will purchase Covad Wireless for cash with the expectation to complete the deal in Q2 2011 after meeting regulatory approvals. Neither company revealed the terms of the deal, however.

As a major SMB competitor to both AT&T (NYSE: T) and Verizon (NYSE: VZ) in the California and Nevada markets, the acquisition has a number of benefits for TelePacific and Covad Wireless' customers. TelePacific not only gains a complementary network footprint, but also another set of high bandwidth products and quicker provisioning times, but it also provides it with an alternative last mile network besides the ILECs. Similar to its recently launched mobile wireless offerings, TelePacific could also sell the fixed wireless network services as an add-on business continuity backup medium for existing wireline customers.  

Likewise, Covad Wireless customers will be able to get access to TelePacific's growing portfolio of wireline-based data networking (Ethernet) and voice products.

While TelePacific is not nearly as large as other CLECs, including even MegaPath, the service provider continues to enhance its service portfolio and service offerings both organically and through targeted acquisitions like Covad Wireless and SMB-focused service provider 01 Communications.

For more:
- see the release

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