First Line-Sharing Tests Completed By Covad in
Minnesota
Contact:
Martha Sessums Director of Corporate Communications (408)
844-7508 msessums@covad.com
Nick Kormeluk VP Investor Relations (408) 844-7457 InvestorRelations@covad.com
CLEC and US WEST Tests Ordered by Minnesota PUC are
Successful
GOLDEN VALLEY, Minn. (Nov. 2, 1999) - The nation's first
test over a shared telephone line between US WEST and Covad
Communications (Nasdaq: COVD) was successfully completed today in
Minnesota, announced Covad. The line-sharing test was ordered by the
Public Utilities Commission (PUC) of Minnesota on September 22, 1999
to determine if Covad, the leading national digital subscriber line
(DSL) broadband services provider, could successfully deliver
digital data service over the phone company's voice line, while
maintaining high quality for both data and voice.
Line-sharing is the typical method the telephone companies use to
deliver DSL data to end-users, utilizing the same telephone line
that consumers use for voice communications. Currently, the phone
companies don't share lines, so companies like Covad are forced to
lease a separate line from the telephone companies to deliver data.
As a result, the end-user is required to pay for a second line if
they want a choice of providers for high-speed DSL broadband
Internet access to their home or business.
"We are pleased and very excited about the early line-sharing
test results as it's a huge step in the right direction for both
Covad and for consumers across the country who want high-speed,
'always-on' broadband Internet access," said Dhruv Khanna, Covad's
general counsel and executive vice president. "If all goes as
planned, citizens of Minnesota will be the first to experience the
benefits of line-sharing. Line-sharing will reduce end-user costs,
decrease installation time, and allow consumers to choose the best
service provider for data and voice services."
The successful result of the precedent-setting tests proves that
line-sharing is feasible. Ultimately, line-sharing is expected to
lower the cost of Covad's high-speed residential DSL service and
give consumers a greater choice of broadband service providers by
eliminating the need for a second line for data service.
Covad completed its lab tests for the Minnesota trials on October
19. The field tests ordered by the Minnesota PUC, which began today
in Minnesota, are expected to run for two weeks. Final test results
must be submitted to the Minnesota PUC no later than November 22.
About Covad Covad Communications is the leading
national DSL broadband services provider of high-speed Internet and
network access. It offers DSL services through Internet Service
Providers to small and medium-sized businesses and home users. Covad
services are currently available across the United States in 51 of
the top Metropolitan Statistical Areas (MSAs) and will be available
in 100 MSAs by the end of 2000. At that time, Covad's network will
reach more than 40 percent of all US homes and 45 percent of all US
businesses. Covad Communications and its affiliates, doing business
as Covad Communications Company, are wholly owned subsidiaries of
Covad Communications Group, Inc. (Nasdaq: COVD). Corporate
headquarters is located at 2330 Central Expressway, Santa Clara, CA,
95050. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: The statements contained in this release
which are not historical facts may be deemed to contain
forward-looking statements, including but not limited to statements
regarding overall market demand for market acceptance of the
Company's services, the intention to deploy our network in new and
existing MSAs and the timing and breadth of coverage in each MSA.
Actual results may differ materially from those anticipated in any
forward-looking statements as a result of certain risks and
uncertainties, including, without limitation, the company's
dependence on third parties to market and resell our services,
intense competition for the Company's service offerings, dependence
on growth in demand for DSL-based services, dependence on incumbent
local exchange carriers for collocation, unbundled network elements,
transport and other facilities, ability to manage growth of our
operations, and the need to raise additional capital. For other
risks and uncertainties applicable to our business refer to the
Company's Securities and Exchange Commission filings.
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