Megapath inks deals with RBOCs

Megapath Networks yesterday announced supplier agreements with all four Bell companies--Verizon Communications, SBC Communications, BellSouth and Qwest Communications--that gives the business-class, broadband ISP 95% coverage of all major metropolitan markets in the U.S.

Combined with existing supplier agreements with Covad Communications, Allegiance Telecom, New Edge Networks and IP Communications, the deals ensure that Megapath has redundant suppliers throughout its nationwide footprint. Having an alternative supplier is especially important in markets that Megapath served exclusively through Covad.

“Covad has a very well-honed provisioning system, but some businesses are still a little hesitant to depend on a company that just emerged from bankruptcy,” said Megapath CEO Harry Taxin. “These [deals with Bell companies] give them the comfort of knowing there is an alternative.”

It also gives Megapath the largest footprint in the business broadband industry, which will help the ISP secure contracts in its core market--small and medium-sized businesses, which are not a priority for Bell companies.

“We give them one single point of purchase and one single point of management,” said Dan Foster, senior vice president of sales and marketing.

Although Megapath offers T-1 services through existing suppliers such as Covad, the Bell company deals are strictly for DSL service.

Megapath expects to be EBITDA positive by the end of the year, Taxin said.