Covad

Covad Communications Company

Company type	Private (formerly public)
Industry	Telecommunications
Founded	1996 in San Jose, California, United States
Defunct	2010
Fate	Merged into MegaPath
Headquarters	San Jose , United States
Area served	United States (44 states, 235 MSAs)
Key people	D. Craig Young (Chairman and CEO, MegaPath), Pat Bennett (Chief Strategy Officer, Covad), Bruce Chatterley (President of Business Markets, Speakeasy)
Products	DSL broadband services, Voice over IP, T1, Web hosting, managed security solutions, IP connectivity, dial-up connectivity, Ethernet-over-Copper services

Covad Communications Company, also referred to as Covad Communications Group, operated as a U.S.-based provider specializing in broadband voice and data communication services. By the third quarter of 2006, its subscriber base reached 530,000, positioning it as the 16th largest Internet Service Provider within the United States. Covad was purchased by U.S. Venture Partners, which in 2010 orchestrated a three-way consolidation involving MegaPath, Covad, and Speakeasy, resulting in a unified Managed Services Local Exchange Carrier (MSLEC) delivering voice and internet solutions under the MegaPath brand.

In January 2015, telecommunications firm Global Capacity acquired MegaPath’s wholesale and direct access operations, including assets that originally belonged to Covad.

The origin of the Covad name derives from several acronyms such as COmbined Voice And Data, Copper Over Voice And Data, and initially COpper Value ADded.

History

Covad pioneered as the first provider to deliver nationwide DSL broadband services, alongside offerings such as Voice over IP, T1, Web hosting, managed security solutions, IP, and dial-up connectivity. It integrated voice and data services through its proprietary network as well as partnerships with ISPs like EarthLink and Speakeasy, value-added resellers, telecom carriers, and affinity groups targeting commercial clients. The company’s broadband footprint extended across 44 states, encompassing 235 Metropolitan Statistical Areas (MSAs) and reaching more than half of all businesses. Covad was established in San Jose, California.

By 2008, the company expanded its technology suite by incorporating Samsung Acemap DSLAMs alongside existing Nokia D50 DSLAMs to support ADSL2+ technology capable of speeds up to 15 Mbit/s. This enhancement primarily targeted EarthLink’s residential customers by delivering combined POTS and ADSL2+ services rather than focusing exclusively on enterprise markets.

In April 2008, private equity firm Platinum Equity acquired Covad. Subsequently in 2010, ownership transferred to U.S. Venture Partners, which merged Covad with Speakeasy under the MegaPath umbrella.

The merger established a leadership team composed of former CEOs from each entity: Chairman and CEO D. Craig Young (MegaPath), Chief Strategy Officer Pat Bennett (Covad), and Bruce Chatterley (Speakeasy), who assumed the role of President of Business Markets overseeing all non-wholesale sales, service operations, and marketing activities.

During mid-2010, Covad introduced Ethernet-over-Copper services within the Los Angeles area utilizing a Fujitsu Flashwave Ethernet core platform offering symmetrical bandwidth up to 20 Mbit/s. This was soon followed by Ethernet over DS1 services. By early 2011, as part of MegaPath, Covad revealed intentions to extend these Ethernet offerings nationwide by the conclusion of 2012.

In September 2014, Global Capacity declared its plan to acquire Covad’s assets from MegaPath, finalizing this transaction on January 1, 2015.