Santa
Clara, CA - (August 23, 2000) - Covad Communications (NASDAQ:
COVD), the leading national broadband provider of DSL (Digital
Subscriber Line) technology, is planning to participate in SBC
Communications Inc.'s (NYSE: SBC) Project Pronto trials, which will
test DSL access in areas where broadband has not traditionally been
available. SBC announced the trials today.
The Project Pronto trial will test the use of neighborhood
broadband gateways (or telephone aggregation boxes located in
neighborhoods) to deliver DSL service, a significant step toward
removing current distance limitations of DSL technology. The
neighborhood gateways will push the capabilities now housed in
central offices closer to customers, helping to make more customers
in SBC's service areas eligible for DSL service.
Neighborhood gateways are intended to help remove the
approximately 17,500 feet distance constraint on the phone line
running from a customer's home or business to a DSL-equipped central
office. This would bring many previously unreachable customers
within 12,000 feet of a location with DSL electronics. This distance
is expected to allow broadband connections for customers, enabling
them to receive high-speed video and teleconferencing services.
Covad intends to participate in trials located in San Jose, CA
and Ft. Worth, TX. These trials are a first step in enabling
competition over Project Pronto. In an attempt to obtain FCC
approval over specific Project Pronto equipment ownership issues,
SBC has already offered to make specific commitments to allow
competitive local exchange carriers (CLECs) like Covad to provide
service over the neighborhood gateways. During the trials, SBC will
provide data CLECs open access to specific neighborhood gateways.
Eleven CLECs, including Covad, plan to participate in market trials
in 12 cities.
"This program will help ensure access for all, which has always
been a Covad priority," said Rich Wong, Covad's executive vice
president and general manager of Broadband and Value Added IP
Services. "Covad will work with SBC to test if the technology works
and ensure that the platform is open to all competitors that wish to
provide service over it. As a team, we will help leverage the
industry's infrastructure to bring DSL to everyone who wants it."
About Covad
Covad is the leading national broadband
services provider of high-speed Internet and network access
utilizing Digital Subscriber Line (DSL) technology. It offers DSL,
IP and dial-up services through Internet Service Providers,
telecommunications carriers, enterprises, affinity groups, PC OEMs
and ASPs to small and medium-sized businesses and home users. Covad
services are currently available across the United States in 96 of
the top Metropolitan Statistical Areas (MSAs). By the end of 2000,
Covad services are expected to be available in 165 MSAs (which
includes MSAs that will be added as a result of the acquisition of
BlueStar Communications). At that time Covad's network is targeted
to reach more than 45 percent of all US homes and 50 percent of all
US businesses. Corporate headquarters is located at 4250 Burton
Drive, Santa Clara, CA 95054. 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 the intention to deploy our network in new and existing
MSAs, the timing and breadth of coverage in each MSA, and our
ability to build our broadband network as anticipated. 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 incumbent local exchange carriers for collocation,
unbundled network elements, transport and other facilities,
development of necessary technologies and operations, 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.
