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MegaPath, Covad and Speakeasy have announced regulatory approval and the completion of their merger, creating a next generation Managed Services Local Exchange Carrier (MSLEC).

Financial terms of the merger were not disclosed.

Officials with MegaPath (News - Alert) said that the new company will have relationships with more than 85,000 business customers and over 4,500 partners throughout North America.

The combined company will be called MegaPath and will operate one of the largest end-to-end facilities-based IP communications networks in the country.

“For too long in the telecommunications industry, customer service and reliability have taken a back seat,” said D. Craig Young, chairman and CEO of MegaPath, in a statement.

“With the combination of MegaPath, Covad and Speakeasy (News - Alert), we are bringing to market a leading nationwide IP network to deliver a complete line of end-to-end managed services, including voice, data and security”, said Young.

He said that small, medium and large enterprises will now benefit from a new service provider that is willing to invest in advanced services, while remaining heavily focused on customer service.

Company officials said that with the combination of MegaPath, Speakeasy and Covad (News - Alert), the new MegaPath will provide a complete voice, access, private networking and managed security solution for business customers of all sizes with a turnkey solution for conducting business and communicating with customers, partners and employees.

In addition, its leading voice services combine broadband and voice capabilities with Quality of Service (QoS) monitoring for superior call clarity, which is backed up by industry-leading service level agreements (SLAs).

According to company officials, the new MegaPath remains a privately held company. Moving forward, it will serve the market through two divisions: a wholesale operating division and a direct, business markets division.

The company’s executive team includes D. Craig Young, former CEO of MegaPath, who now serves as chairman and CEO; Pat Bennett, former CEO of Covad, as chief strategy officer and head of wholesale markets; and Bruce Chatterley (News - Alert), former CEO of Speakeasy, as president of the business markets unit in charge of all non-wholesale customer sales, service and marketing.