Wednesday, May 4, 2005

Covad Signs Access Agreement with SBC, AT&T

Covad Communications reached an agreement with SBC Communications and AT&T under which it would help the combined entity extend IP-based services to out-of-region consumers and businesses. The deal is effective upon completion of the SBC and AT&T merger.

AT&T entered into a long-term commercial agreement with Covad on Jan. 1, 2002, buying high-speed Internet access services for resale. SBC entered into an agreement for similar services with Covad on Nov. 12, 2001. This new commercial agreement, along with the current contracts, would continue past the completion of the SBC-AT&T merger.

SBC and Covad also signed a separate commercial agreement that covers the provision of line-sharing over copper and remote-terminal facilities in SBC's 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.

SBC said the deal demonstrates its commitment to promoting "vigorous competition" in the telecommunications industry and that the deal makes it a more effective out-of-region competitor.


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