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Covad renames BlueStar.net unit

Covad Communications, the troubled high-speed DSL (digital subscriber line) provider, has renamed its BlueStar.net unit, calling the direct sales subsidiary Covad Business Solutions. Covad acquired BlueStar last June in a move that raised criticism for the company and sent Covad shares lower. Some investors feared the company's new direct sales approach--Covad previously had strictly sold DSL lines on a wholesale basis to ISP resellers--would cause Covad to compete with its customers. Covad Business Solutions primarily sells broadband Net access and Internet services in smaller cities, often called "secondary markets."

    Covad Communications, the troubled high-speed DSL (digital subscriber line) provider, has renamed its BlueStar.net unit, calling the direct sales subsidiary Covad Business Solutions. Covad acquired BlueStar last June in a move that raised criticism for the company and sent Covad shares lower.

    Some investors feared the company's new direct sales approach--Covad previously had strictly sold DSL lines on a wholesale basis to ISP resellers--would cause Covad to compete with its customers. Covad Business Solutions primarily sells broadband Net access and Internet services in smaller cities, often called "secondary markets."