Covad Communications will acquire GoBeam, a privately-owned provider of VoIP, for $48 million in stock. GoBeam, which is based is Pleasanton, California, currently has more than 13,000 VoIP stations (telephones) serving business customers throughout California and in the Chicago, Illinois area. The company offers a full-feature hosted PBX solution with online management tools. GoBeam will retain its own brand and continue to operate its services until mid-year 2004 when the transition to Covad has been completed.
Covad said it plans to eventually offer VoIP to the consumer market through its wholesale partners and direct sales. This accelerated roll out of VoIP services will require additional investment, and Covad is currently evaluating what impact this will have on the company’s previous expectation to be cash-flow positive by mid-year 2004. http://www.covad.comhttp://www.gobeam.com
- In February 2004, Covad Communications announced plans to offer VoIP to business customers and consumers in the majority of the country’s top Metropolitan Statistical Areas (MSAs) by Q4 2004. Covad intends to initially launch three VoIP products targeted at business customers: Basic Voice, Small Office/Home Office (SOHO) Voice, and Virtual PBX for Enterprise users needing a virtual Private Branch Exchange. A consumer VoIP offering will follow after the launch of Covad’s business VoIP services. All three voice products will include unlimited local calling with the option of either bundled domestic long distance minutes, or unlimited domestic long distance calling. These products will support international and inbound toll-free calling. Local number portability, emergency 911 and directory assistance will be standard features. Pricing was not disclosed. In addition to providing VoIP services directly to its customers and turnkey solutions for wholesale partners, Covad has made and will make investments in its broadband network to support the market entry of its wholesale partners offering their own VoIP products.
