Covad and Qwest Sign Commercial Line-Sharing Agreement
15 April 2004
SAN JOSE, Calif. and DENVER, April 15 -- Covad Communications Group, Inc. (OTC Bulletin Board: COVD), a leading national broadband service provider of high-speed Internet and network access, and Qwest Communications International Inc. (NYSE: Q) today announced the completion of a three-year commercial line sharing agreement. The agreement enables Covad to continue to offer high-speed digital subscriber line (DSL) services to thousands of small and medium businesses and home users in the seven states within the Qwest region where Covad offers service. This marks the first time a competitive communications carrier and a regional Bell operating company have negotiated commercial terms for access to line sharing since the Federal Communications Commission's (FCC) Triennial Review decision.
"Today's agreement demonstrates that the economics of line sharing are beneficial to both parties and that commercial agreements can be negotiated for this service," said Charles Hoffman, president and CEO of Covad. "We commend Qwest for its industry leadership in reaching this agreement and we hope to achieve similar agreements that will allow Covad to continue offering line-shared DSL services throughout the country."
Line sharing allows communications providers to deploy DSL on the same line customers use for their voice phone services. Federally mandated access to line sharing as a regulated, unbundled network element is being phased out pursuant to the FCC's Triennial Review Order issued in August 2003. The order included grandfathering provisions covering existing Covad customers.
"We're pleased to have formed this new agreement with Covad because it shows Qwest's commitment to working with our wholesale customers and underscores our support of fair, market-based competition," said Teresa Taylor, executive vice president, Qwest wholesale. "We look forward to continuing our long-standing relationship with Covad and hope to replicate this success with other customers."
The agreement is for three years beginning in October of 2004 when current federal line-sharing unbundling obligations are phased out. Financial terms were not disclosed, however, Hoffman said: "The pricing of this agreement enables Covad to aggressively compete for line-sharing customers in the Qwest region and is consistent with our business plan."
About Covad
Covad is a leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, T1, hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad's network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: http://www.covad.com.
About Qwest
Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company's 47,000 employees are committed to the "Spirit of Service" and providing world-class services that exceed customers' expectations for quality, value and reliability. For more information, please visit the Qwest Web site at http://www.qwest.com.
