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TelePacific Snaps up MegaPaths Fixed Wireless Broadband Provider

TelePacific Communications on Wednesday said it has agreed to buy fixed wireless broadband provider NextWeb Inc., the MegaPath Inc. subsidiary that operates as Covad Wireless.

Los Angeles-based TelePacific said it will pick up roughly 3,500 broadband fixed wireless business customers in California, Nevada and suburban Chicago. Both TelePacific and MegaPath are privately held, so they didnt disclose the deals financial terms. However, a MegaPath spokesman did say the transaction consisted of TelePacific’s all-cash purchase of Covad Wireless stock.

TelePacific said the agreement reduces its reliance on incumbent carriers for last mile” network access and strengthens its position as a competitor to AT&T Inc. and Verizon Communications Inc. for SMBs in California and Nevada. The move also comes as TelePacific this week launched mobile voice services.

For MegaPath, selling Covad Wireless made sense.

“Following our merger with Covad and Speakeasy, MegaPath is continuing to refine our business with a focus on providing nationwide access, security and voice services,” said D. Craig Young, chairman and CEO of MegaPath, in a press release. “As a regional offering, Covad Wireless fell outside of our strategic focus, and this agreement ensures that those customers are properly supported.”

TelePacific expects the deal to close by the second quarter of 2011 following customary closing conditions, including federal regulatory approvals. 

The Covad Wireless purchase marks TelePacifics second major acquisition of the year. In October, the CLEC completed the takeover of O1 Communications SMB base.


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