Covad wins Flashcom customers
Covad Communications, a wholesale provider of DSL (digital subscriber lines), has been granted approval by the Bankruptcy Court in Santa Ana, Calif., to acquire the rights to 24,500 former Flashcom high-speed Internet customers. Covad will buy the customer list for $750,000 in cash and debt forgiveness, though the company could pay up to another $2.75 million based on how many customers Covad successfully migrates to new ISP partners. Flashcom, which filed for bankruptcy protection in December, is Covad's largest financially troubled partner.
Covad Communications, a wholesale provider of (digital subscriber lines), has been granted approval by the Bankruptcy Court in Santa Ana, Calif., to acquire the rights to 24,500 former Flashcom high-speed Internet customers. Covad will buy the customer list for $750,000 in cash and debt forgiveness, though the company could pay up to another $2.75 million based on how many customers Covad successfully migrates to new ISP partners. Flashcom, which filed for bankruptcy protection in December, is Covad's largest financially troubled partner.
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