Covad
and Verizon Sign Commercial DSL Line-Sharing Agreement;
Covad Now Has Pacts Covering 90% of Its Line-Shared
Customer Base [December 15, 2004]
SAN
JOSE, Calif., Dec 15, 2004 (BUSINESS WIRE) -- Covad
Communications Group, Inc. (COVD), a leading national
provider of integrated voice and data communications,
and Verizon (VZ) have signed a commercial agreement
enabling Covad to continue to provide line-sharing services
to digital subscriber line (DSL) subscribers throughout
Verizon territory for a four-year period.
Line-sharing allows communications providers
like Covad to deploy high-speed DSL broadband on the
same line customers use for their voice phone services.
While the specific terms of the agreement
are confidential, the economic terms of the agreement
are comparable to those of Covad's other commercial
line-sharing agreements. The agreement is effective
Jan. 1, 2005. Until that time, line-sharing pricing
will continue under an interim agreement that was reached
in September.
The agreement allows Covad to continue
offering high-speed DSL services to thousands of small
and medium businesses, and home users in the 19 states
within the Verizon territory where Covad offers service.
Earlier this year Covad entered into agreements with
Qwest and SBC to continue providing line-sharing in
their respective regions.
"We applaud Verizon for its leadership
in striking a long-term commercial agreement,"
said Charles Hoffman, president and chief executive
officer of Covad. "With the Qwest, SBC and Verizon
agreements, Covad has now secured continued access to
line-sharing with carriers accounting for approximately
90 percent of our line-shared customer base and the
pricing in these agreements allows Covad to provide
very competitive service offerings to our customers
and partners."
About Covad
Covad is a leading nationwide provider
of broadband voice and data communications. The company
offers DSL, Voice Over IP, T1, Web 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 broadband 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: www.covad.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995:
The foregoing contains "forward-looking
statements" which are based on management's current
information and beliefs as well as on a number of assumptions
concerning future events made by management. Readers
are cautioned not to put undue reliance on such forward-looking
statements, which are not a guarantee of performance
and are subject to a number of uncertainties and other
factors, many of which are outside Covad's control that
could cause actual results to differ materially from
such statements. These risk factors include the impact
of increasing competition, pricing pressures, consolidation
in the telecommunications industry, uncertainty in telecommunications
regulations and changes in technologies, among other
risks. For a more detailed description of the risk factors
that could cause such a difference, please see Covad's
10-K, 10-Q, 8-K and other filings with the Securities
and Exchange Commission. Covad disclaims any intention
or obligation to update or revise any forward-looking
statements, whether as a result of new information,
future events or otherwise. This information is presented
solely to provide additional information to further
understand the results of Covad.
SOURCE: Covad Communications |
