DSLnetworks takes legal steps against Covad

(Telephony) Internet service provider DSLnetworks filed an injunction against Covad Communications Wednesday to prevent the DSL provider from soliciting its customers through direct contact.

The injunction was filed in Santa Clara County Superior Court in California yesterday morning and outlines that Covad violated a non-disclosure agreement that the companies reached in December, said DSLnetworks marketing manager Dan Melmed.

Melmed said that Covad essentially breached DSLnetworks’ inner sanctum when it used confidential customer information to solicit its customer base.

Covad dropped DSLnetworks and its 5000 customers from service Feb. 7 for failing to make overdue payments. Since that time, Covad has been contacting the ISP’s now out-of-service customers, directly informing them of the terminated relationship and offering a choice of alternative ISP options, including its own ISP, Covad.net.

But Melmed said Covad’s reasons for cutting service had more to do with siphoning DSLnetworks’ customers than failing to meet financial requirements.

“We think that Covad’s primary intention in shutting off our customers was to take over as many as they could,” Melmed said. “That’s why they gave us no warning, which would have allowed us more time to switch them to other providers.”

A spokeswoman at Covad said the DSL provider has not been served any legal documents and does not know when or if the court will contact Covad.

“We’ll fight any injunction that comes our way, as soon as we’re made aware of exactly what’s involved,” the spokeswoman said.

DSLnetworks said it hopes to have DSL service back to its customers in two to four weeks, but that realistically it could take three to five weeks. Meanwhile, the company is moving customers to alternate DSL providers and providing a free temporary dial-up solution.